Recent content by waptrick

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    MHB How Do You Solve the Equation 183997272.140609=SUM((X/PI())/SQRT(9)/16)?

    Hi Everyone Sorry if this is posted in the wrong section, but I have this equation I am battling to solve. Here it is: 183997272.140609=SUM((X/PI())/SQRT(9)/16) I have no clue. Does anyone have any idea?
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    MHB Can a Student with 73 Marks Place Among 18 Candidates?

    Sorry I was probably not as clear as I should have been. The original question was where would a student with a mark of 73 place among the 18 students? As in what number out of the 18 students
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    MHB Can a Student with 73 Marks Place Among 18 Candidates?

    I'm not sure if there is insufficient information or I may possibly overlooking something. But here goes... Students have been put in a range of percentages according to their marks obtained in Statistics. 1 student in 85-90 1 student in 80-84 5 students in 75-79 11 students in 70-74 If a...
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    MHB Equivalent Uniform Annual Cost

    FasterTrucks Ltd is a transport company. The enterprise needs to decide if a new delivery vehicle will be purchased. Two models are currently considered. You are required to indicate which one of the two models should be purchased. You decide to apply the method of EQUIVALENT UNIFORM ANNUAL...
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    MHB Calculate Capitalised Cost for Perpetual Service in PrivaPower Ltd

    After the installation of the turbines took place, annual maintenance will be required. The annual maintenance cost of the turbines amounts to R100 000 per year (payable at the beginning of the first year that the turbines are used). As a result of the wear-and-tear of the turbines, however, it...
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    MHB Calculate Capitalised Cost for Perpetual Service in PrivaPower Ltd

    PrivaPower Ltd is considering the construction of a hydro-electric power station. The electricity generated by the power station will be sold to Eskom. You are required to calculate the capitalised cost now of the perpetual service if the enterprise’s cost of capital amounts to 14% per annum...
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    MHB What is the net present value of annual maintenance cost for a delivery vehicle?

    The estimated annual maintenance cost associated with the delivery vehicle amounts to R14 000 for the first year that the vehicle will be used (payable at the end of the year). The annual maintenance cost for the subsequent two years will increase by 4% per year as a result of wear and tear...
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    MHB Fixed-Income Analysis: SA Bond Traders P/L & Return

    Assume there are 2 SA bond traders. Trader A has a short bond position of R50m nominal in R2048’s (selling for 9.36%) and trader B has a long position of R50m nominal in R2023’s (selling for 8.43%). Indicate (i) the likely 3 month repo rates in the current market; (ii) P/L and return they can...
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    MHB How to Calculate the Future Value of Geometric Annual Annuity?

    Ahh that makes sense now. :)So...23975.87[[(1+0.14)^15 -(1+0.11)^15)/0.14-0.11] = $1,880,785.921880785.92(1.14)= 2,144,095.94
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    MHB How to Calculate the Future Value of Geometric Annual Annuity?

    No why is the exponent 5 and not 4?
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    MHB How to Calculate the Future Value of Geometric Annual Annuity?

    So do you get the value of Payment 30 and then use the new growth rate to get payment 35? Such as 2000(1+0.07)^29 = $14,228.51 Then, 14228.51(1+0.11)^4 = $21,599.89
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    MHB How to Calculate the Future Value of Geometric Annual Annuity?

    Would it be 2000(1+0.11)^34= $69,504.24 Then, 69504.24[[(1+0.14)^15-(1+0.11)^15]/0.14-0.11]= $5,452,256.30 Then, 5,452,256.30(1.14)= $6,215,572.18
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    MHB How to Calculate the Future Value of Geometric Annual Annuity?

    I get $ 1373241.69. If the initial question was changed so that it was asked what is the future value of the last 15 annual payments at the end of the period of 45 years? Would you compound the annuity or just calculate the annuity for the last 15 payments?
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    MHB How to Calculate the Future Value of Geometric Annual Annuity?

    So in effect 2000(1+0.07)^20= 7739.37 But, the interest rate would change from 0.10 to 0.14 because of the initial question? Then, 7739.37[[(1+0.14)^10-(1+0.07)^10]/0.14-0.07]
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    MHB How to Calculate the Future Value of Geometric Annual Annuity?

    My next question relates to the future value of the 10 annual payments that are received from the end of Year 21 until the end of Year 30 at the end of the period of 45 years? Do you use PMT=2000, or do you have to apply the growth rate first?
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