The smarter way
to do assignments.

Please note that this is just a preview of a school assignment posted on our website by one of our clients. If you need assistance with this question too, please click on the Order button at the bottom of the page to get started.

A city engineer has estimated the annual toll revenues from a newly proposed highway construction over 20 years as follows:
An = (\$2,000,000)(n)(1.06)n-1,
n = 1, 2,…., 20.
To validate the bond, the engineer was asked to present the estimated total present value of toll revenue at an interest rate of 6%. Assuming annual compounding, find the present value of the estimated toll revenue.
Answer :- An = (\$2,000,000)(1.06)n-1 Interest rate = 6% Present value =(\$2,000,000)/(1 + 0.06) +(\$2,000,000)(1.06)/(1 + 0.06)^2 +(\$2,000,000)(1.06)^2/(1 + 0.06)^3…………….(\$2,000,000)(1.06)^19/(1 + 0.06)^20 As, Sn = a(1 -…

/(1 – r) In this case, a =(\$2,000,000)/(1 + 0.06) r = 1.06/1.06 = 1 Hence, An = [(\$2,000,000)/(1 + 0.06)]* (20) = [(\$2,000,000)/(1.06)]* (20) = \$37,735,850

## GET HELP WITH THIS ASSIGNMENT TODAY

Clicking on this button will take you to our custom assignment page. Here you can fill out all the additional details for this particular paper (grading rubric, academic style, number of sources etc), after which your paper will get assigned to a course-specific writer. If you have any issues/concerns, please don’t hesitate to contact our live support team or email us right away.