Purchase Solution

Repaving Deposit

Not what you're looking for?

Ask Custom Question

In developing a subdivision, the developer is required to build the roads to the city building code specifications and to deposit an amount which will allow the city to repave the roads every four years for an indefinite period of time. The costs to construct the roads are $25,000 and $4,000 each time repaving is required. The city estimates they will be able to invest the deposited sum at 6% indefinitely.

1. How much money should the city require the developer to deposit?

Give answer to closest hundred.

Purchase this Solution
Solution Summary

The expert examines repaving deposits.

Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

View More Free Quizzes
Related BrainMass Solutions

  • Cost of Natural Resource

    After the copper is extracted in approximately four years, the company is required to restore the land to its original condition, including repaving of roads and replacing a greenbelt.

  • Adjusting Entries for PP&E (Mandville Corporation)

    Sidewalk to building $2,500 Repaving of road to bldg 3,500 Chain link fence (replaces rusted fence currently around property) 4,000 3.

  • The overhead costs associated with companies

    Along with the machine, other assets that are depreciated are also costs as depreciation or amortization is incurred each year, like the cost of the building and land, land improvements (like repaving the parking lot), patents and trademarks, and so forth

  • Anova for a Call Center

    24.84 Missing Deposit 24.96 Missing Deposit 24.85 Missing Deposit 25.01 Copy of an Item 24.92 Copy of an Item 25.07 Copy of an Item 24.92 Copy of an Item 25.24 Fee Refund 24.88 Fee Refund 25.11 Fee Refund 24.9 Fee Refund 25.18 Missing Deposit

  • Calculating future value of a deposit

    363414 Calculating Future Value of a Deposit You have just placed $1,500 in a bank savings deposit and plan to hold that deposit for eight years, earning 5.5 percent per year.

  • Calculating present and future values

    Case A Present Value of deposit=PV=? Annual interest rate=i=10% Number of periods=n=5 years Future Value of deposit=FV=$13000 Present Value of deposit=FV/(1+i)^n=13000/(1+10%)^5=$8071.98 Case B Present Value of deposit=PV=?

  • Currency-to-deposit ratio

    reserves to deposit, increasing the reserve to deposit ratio as well.

  • Calculate PV, FV, PMT

    On January 2, 2008, this deposit has accumulated to $42,487. Interest is compounded annually on the account. What rate of interest did Mike earn on the deposit? 3. Lee Spony made a deposit in the bank on January 1, 2001.

  • Depositing to a Saving Account

    How much less do you have to deposit today to reach this goal if you can earn 5.5 percent rather than 5 percent on your savings? Today's deposit is the only deposit you will make to this savings account.

View More Related Solutions