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vfiekz [6]
3 years ago
14

A salt mine you inherited will pay you 25,000 per year for 25 years, with the first payment being made todayIf you think retum t

he mine is 7.5%, how much should you ask for if you decide to sell?
a. $284,595b. $299,574c. $314,553d. $330,281e. $346,795

Business
1 answer:
Lina20 [59]3 years ago
6 0

Answer:

b. $299,574

Explanation:

For calculating the ask price, we first need to compute the present value which is attached in the spreadsheet.

In this question, we use the present value formula which is shown in the spreadsheet.  

The NPER represents the time period.

Given that,  

Future value = $0

Rate of interest = 7.5%

NPER = 25 years  - 1 years = 24 years

PMT = $25,000

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the present value is $278,673.65

Now the ask price is

= $274,574.17  + $25,000

= $299,574.17

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C. To define and solve problems and make decisions about a particular situation

Explanation:

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7 0
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E

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4 0
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The cookie company in the mall hires only labor to produce cookies. The workers are paid $75 per day, and the cost of renting th
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QUESTION 1
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The format button is used to format a table's text to make it more interesting in PowerPoint.

<h3>What is the work of the Format button?</h3>

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The formatting button is used to make the more interesting and attractive texts, tables, pictures, etc.

Therefore, the formatting button is used to make more interesting the text of the table.

Learn more bout the format button, refer to:

brainly.com/question/8517487

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