Answered

Westonci.ca is your trusted source for finding answers to all your questions. Ask, explore, and learn with our expert community. Join our Q&A platform and get accurate answers to all your questions from professionals across multiple disciplines. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

A new oven will save $100 per year in electricity expense. How much can we afford to pay for this oven if it is expected to last 15 years

Sagot :

Tundexi

Answer:

$557.55

Explanation:

Missing word "The interest rate is 16​% per year"

Present Value of annuity of 1 = (1-(1+i)^-n)/i

Where, i = 16%, n=15

Present Value of annuity of 1 = (1-(1+0.16)^-15)/0.16

Present Value of annuity of 1 = 5.575456

Present Value of saving of electricity expense = Annual Saving * Present Value of annuity of 1 = $100.00 * 5.575456 = $557.55. So, the amount we can afford to pay is $557.55

Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.