The Golden Gate bridge is maintained by 17 ironworkers, who replace corroding steel and rivets, and 38 painters. If the painters have an average wage of $120,000 per year with benefits and the ironworkers get $150,000, what is the capitalized cost today of all the future wages for bridge maintenance at an interest rate of 8% per year?

Question

Business

Maggie Barnes

23 March, 11:56

The Golden Gate bridge is maintained by 17 ironworkers, who replace corroding steel and rivets, and 38 painters. If the painters have an average wage of $120,000 per year with benefits and the ironworkers get $150,000, what is the capitalized cost today of all the future wages for bridge maintenance at an interest rate of 8% per year?

+4

Answers (1)

Know the Answer?

Lucas Fox · Answer 1

Painter's wage is 120,000

There are 38 painters: 120,000*38 = 4,560,000

Ironworker's wage is 150,000

There are 17 ironworkers: 150,000*17 = 2,550,000

4,560,000+2,550,000 = 7,110,000

So total cost on maintenance of bridge if we discount at 8%=

= 7,110,000/0.08 = 88,875,000