need help or For a loan of 7000 for 5 years at simple intere

need help

or For a loan of $7000 for 5 years at simple interest rate of 8%. Please calculate the amount due at end of loan Present worth (PW) is the benefit minus cost. A machine costs $40,000, operation and maintenance cost (0&M;) $2000/yr, the savings $10,000/yr, and the salvage value 5 yrs - $6000, i= 10%. Please calculate PW. r Tho loan will ha rapaid 2 vears after the 3 vears

Solution

2.) Loan amount 7000 Time Period 5 years Intrest rate 8% Amount Due at the end of loan 7000+0.08*5*7000 9800 3.) Machine Cost $40000 O&M Cost $2000/year Savings $10000/year Salvage value@5 years $6000 Intrest rate 10% Net Savings per year,C $8000/year Present value of yearly net saving= 30326.29 (C/i)(1-(1+i)^(-n)) = ($8000/0.1)(1-1.1^-5) Present value of Salvage value @ 5 year 3725.527938 $6000/1.1^5 Present worth -5948.182062