g invested $800,000 in a new CNC hot wire cutting machine. They intend to sell foam products fabricated using this machine. At an interest rate of 12% per year compounded quarterly, the quarterly income required to recover the investment in 3 years is (choose closet answer) :

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3 July, 01:38

g invested $800,000 in a new CNC hot wire cutting machine. They intend to sell foam products fabricated using this machine. At an interest rate of 12% per year compounded quarterly, the quarterly income required to recover the investment in 3 years is (choose closet answer) :

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Darien Anthony · Answer 1

Quarterly income = $ 36,643.03

Explanation:

The quarterly income ca be determined using the present value of the annuity technique.

The Present Value of the annuity technique

PV = A * ((1 - (1+r) ^ (-n) / r

A - quarterly payment, n - number of quarters, quarterly rate, PV - Present of investment

A-? n - 3 * 12 = 36, r-12%/4 = 3%

800,000 = A * (1 - (1.03) ^ (-36)

800,000 = A * (1 - (1.03) ^ (-36)

800,000 = A * 21.8322525

A = 800,000/21.8322525

A = 36,643.03

Quarterly income = $ 36,643.03