A.Compute the annual cost of purchasing 70 transit cars at $1.4 million each, with

10% interest and a 40-year useful life.

B. A sinking fund is to be created, with the same deposit at the end of each of ten years, to yield the following progress payments for a transportation construction project:

At the end of                     Yield

Year 10                          $10 million

Year 11                          $10 million

Year 12                           $10 million

Year 13                           $30 million

What is the annual deposit required, with interest = 10%

B.A sinking fund with a life of 30 years is created as part of a labor agreement, with

annual payments into it of $3000. Thereafter, there are to be annual withdrawals

for fifteen years, depleting the fund. What annual withdrawals are justified