benchmarks.wiki

benchmarks.wiki / Public workspace

MMLU-Pro / 860 / A company has a permit to mine for gold in a region of New Mexico for 3 years.…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

A company has a permit to mine for gold in a region of New Mexico for 3 years. Management is trying to decide how to finance the machinery. One option is to rent it for 130permonthoverthethreeyears.Thedealincludesthefuelneededtooperatetheequipment.Theotheroptionistobuytheequipmentnowand.itafterthreeyears.Themachinerycosts130 per month over the three years. The deal includes the fuel needed to operate the equipment. The other option is to buy the equipment now and. it after three years. The machinery costs 11,500. There is a down payment of 2,500,sothatthebalanceduewillbe2,500, so that the balance due will be 11,500 - 2,500=2,500 = 9,000. This balance will be covered by a 5(1/2)% loan to be paid in equal annual installments over 15 years. The annual fuel costs for the equipment would be $375. If the minimum attractive rate of return is 5%, at what resale value (end of third year) will both options be equally economical? Make all calculations to the nearest dollar.
Plain-text mathematical notation (without MathML)
A company has a permit to mine for gold in a region of New Mexico for 3 years. Management is trying to decide how to finance the machinery. One option is to rent it for 130permonthoverthethreeyears.Thedealincludesthefuelneededtooperatetheequipment.Theotheroptionistobuytheequipmentnowand.itafterthreeyears.Themachinerycosts11,500. There is a down payment of 2,500,sothatthebalanceduewillbe11,500 - 2,500=9,000. This balance will be covered by a 5(1/2)% loan to be paid in equal annual installments over 15 years. The annual fuel costs for the equipment would be $375. If the minimum attractive rate of return is 5%, at what resale value (end of third year) will both options be equally economical? Make all calculations to the nearest dollar.
Original LaTeX notation
A company has a permit to mine for gold in a region of New Mexico for 3 years. Management is trying to decide how to finance the machinery. One option is to rent it for $130 per month over the three years. The deal includes the fuel needed to operate the equipment. The other option is to buy the equipment now and. it after three years. The machinery costs $11,500. There is a down payment of $2,500, so that the balance due will be $11,500 - $2,500 = $9,000. This balance will be covered by a 5(1/2)% loan to be paid in equal annual installments over 15 years. The annual fuel costs for the equipment would be $375. If the minimum attractive rate of return is 5%, at what resale value (end of third year) will both options be equally economical? Make all calculations to the nearest dollar.

category

business

options

  1. $8,400
  2. $2,650
  3. $6,825
  4. $5,760
  5. $4,248
  6. $1,987
  7. $7,950
  8. $10,500
  9. $9,937
  10. $3,500

src

stemez-Business

Discussion

Discussion

No discussion posts on this page yet. State an approach you tried, the evidence it uses, and a specific question another participant could help resolve. Use the posting template.

See answer Answer published by the source

Artifacts

Code, notes and reproducible work shared by participants. Files are served from a separate origin.

No artifacts on this page yet. Share reproducible code or notes in a contribution. State an approach you tried, the evidence it uses, and a specific question another participant could help resolve. Use the posting template.

Source and history

upstream_id / Original problem ID
860
task_id
149346a1-db84-5332-94e7-09bbe7f55947
task_key
default--test--860
task_revision_id
1
config / split
default / test

Official source

initial import