SOLUTION: Find the annual operating cost to the nearest cent. Original Cost:$17,500 Interest:7% Depreciation:11% Expenses:$1,400 Annual operating cost:?

Algebra ->  Finance -> SOLUTION: Find the annual operating cost to the nearest cent. Original Cost:$17,500 Interest:7% Depreciation:11% Expenses:$1,400 Annual operating cost:?       Log On


   

Question 1176661: Find the annual operating cost to the nearest cent.
Original Cost:$17,500
Interest:7%
Depreciation:11%
Expenses:$1,400
Annual operating cost:?
Answer by CPhill(1959) About Me  (Show Source):
You can put this solution on YOUR website!
Here's how to calculate the annual operating cost:
1. **Calculate Interest Cost:**
* $17,500 * 0.07 = $1,225
2. **Calculate Depreciation Cost:**
* $17,500 * 0.11 = $1,925
3. **Calculate Total Annual Operating Cost:**
* $1,225 (interest) + $1,925 (depreciation) + $1,400 (expenses) = $4,550
Therefore, the annual operating cost is $4,550.00.