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18 January, 02:18

The Golden Gate bridge is maintained by 17 ironworkers, who replace corroding steel and rivets, and 38 painters. If the painters have an average wage of $120,000 per year with benefits and the ironworkers get $150,000, what is the capitalized cost today of all the future wages for bridge maintenance at an interest rate of 8% per year?

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  1. 18 January, 02:38
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    Painter's wage is 120,000

    There are 38 painters: 120,000*38 = 4,560,000

    Ironworker's wage is 150,000

    There are 17 ironworkers: 150,000*17 = 2,550,000

    4,560,000+2,550,000 = 7,110,000

    So total cost on maintenance of bridge if we discount at 8%=

    = 7,110,000/0.08 = 88,875,000
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