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mihalych1998 [28]
2 years ago
9

Ben sold his small online business for $100,000. The purchaser will pay him $20,000 today, then $20,000 every year for the next

four years. Assume that Ben could invest a lump-sum payment today in an account yielding an interest rate of 4% annually. Find the total present value of all five payments.
A.
$87,096
B.
$88,384
C.
$92,598
D.
$93,964
Mathematics
1 answer:
kifflom [539]2 years ago
7 0

Answer:

c. 92,598

Step-by-step explanation:

20000 + 20000/1.04 + 20000/(1.04^2) + 20000/(1.04^3) + 20000/(1.04^4)= 20000 + 19230.77 + 18491.12 + 17779.73 + 17096.08

= 92597.

= 92,598

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It should not be changed.

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Ratio and fractions are same.

Example:

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Find the volume of a sphere with a radius of 5 inches round to the nearest hundredth
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4 0
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A hockey season ticket holder pays $99.00 for her tickets plus $3.00 for a program for each game. A second person pays $14.00 fo
ddd [48]

The two person will pay the same amount of money when they both watch 9 hockey games.

<h3>How to find the equation and use it to find cost?</h3>

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y = 99 + 3x

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x = number of game

A second person pays $14.00 for a ticket to every game but doesn't buy programs. Therefore,

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4 0
2 years ago
A company has determined that the number of items it sells varies inversely as the price of the item. If 20,000 items can be sol
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Let N be the number of items sold and p the price. 
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Marvin is comparing two different music websites. Website A charges $10 per month for a subscription and $0.25 per song. Website
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