4 years ago

20 pts please help!

Mathematics

2 answers:

stepladder [879]4 years ago

8 0

Answer - B

Formula to calculate present value of annuity:

PV = P( 1 - ( 1+r)^(-n) )/r

PV- present value, P- payment, r- periodic interest rate, n - number of periods

On putting the values,

PV = 2000( 1 - ( 1 + (5.65/1200)^(-240) ) / (5.65/1200)

PV = 283273.44

Lump sum - PV = 300000 - 283273.44 = 16726.56

sweet-ann [11.9K]4 years ago

6 0

Did you get an answer? I thought it was lump sum, but i don't know which option

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