You are presented with two alternative accounts. One has a rate of 6% compounded monthly while the other is 6% compounded annually. You currently have $7,500 to invest. How much more will you have in the account after 5 years if you invest in the account with more frequent compounding periods?

Russell's is considering purchasing $697,400 of equipment for a four-year project. the equipment falls in the five-year macrs class with annual percentages of .2, .32, .192, .1152, .1152, and .0576 for years 1 to 6, respectively. at the end of the project the equipment can be sold for an estimated $135,000. the required return is 13.2 percent and the tax rate is 23 percent. what is the amount of the aftertax salvage value of the equipment assuming no bonus depreciation is taken