Suppose You Wish to Purchase a Mine That Will Yield

question 147

Short Answer

Suppose you wish to purchase a mine that will yield an annual return of $32,000 for 12 years,after which the mine will have no value.You want to earn 8% annually on this investment and also set up a sinking fund to replace the purchase price.If money is placed in the fund at the end of each year and earns 6.2% compounded annually,how much should you pay for the mine?

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Definitions:

Biopsychosocial Approach

An integrated approach that considers biological, psychological, and social factors in understanding health, illness, and healthcare delivery.

Major Depressive Disorder

A mood disorder in which a person experiences, in the absence of drugs or a medical condition, two or more weeks of significantly depressed moods, feelings of worthlessness, and diminished interest or pleasure in most activities.

Seasonal Affective

Part of Seasonal Affective Disorder (SAD), a type of depression that occurs at the same time each year, typically in the winter months.

Lethargic

A state of sluggishness, fatigue, or lack of energy, which can be a symptom of various medical conditions.