SOLUTION: Find the annual operating cost to the nearest cent. Original Cost:$15,600 Interest:5% Depreciation:12% Expenses:$1,500 Annual operating cost:?

Algebra ->  Finance -> SOLUTION: Find the annual operating cost to the nearest cent. Original Cost:$15,600 Interest:5% Depreciation:12% Expenses:$1,500 Annual operating cost:?      Log On


   

Question 1176635: Find the annual operating cost to the nearest cent.
Original Cost:$15,600
Interest:5%
Depreciation:12%
Expenses:$1,500
Annual operating cost:?
Answer by CPhill(1987) About Me  (Show Source):
You can put this solution on YOUR website!
Let's calculate the annual operating cost:
1. **Calculate Interest Cost:**
* $15,600 * 0.05 = $780
2. **Calculate Depreciation Cost:**
* $15,600 * 0.12 = $1,872
3. **Calculate Total Annual Operating Cost:**
* $780 (interest) + $1,872 (depreciation) + $1,500 (expenses) = $4,152
Therefore, the annual operating cost is $4,152.00.