Question

Q2) How much money must a group of volunteers raise in order to fund the construction of permanent children playgrounds in their community schools, knowing that the initial cost will be $130,000 with $4,300 annual maintenance cost. There will be an additional one-time cost in 5 years of $30,000 to cover expansion costs. The interest rate is 5% per year.

Answer 1

M # capitaliseel cost # 8 0 1 2 3 5 6 ... .. sha у A A A A A A A capitalized - capitalisel value pwen KENHH initial value COS+ (P) - P=A R, o] - present worth of the unita I series as Annuity (on) NOTE: K OK 3K ... x548 ILLI {=* i PE PEA *SEF con

AAA X A A A A A 15 $ 130,000 Given A = $4800 , annual X -B 30,000 after 5 years initial = $180,000 - 5% = 0.05 Present - initial + + litir worth = 130,000 + 4300 0.05 30.000 (1+0.0537 Presena $ 324, 584.87 worth