For this case we can use the following rule of three:
$ 500 ---------> 100%
$ 400 ---------> x
Clearing x we have:
x = (400/500) * (100) = 80%
Therefore, the percentage of decrease in the rent is:
p = 100-x
p = 100-80
p = 80%
Answer:
a proportion can be used to calculate p is:
p = 100 - ((400/500) * (100))
Answer:
a) The present value is 688.64 $
b) The accumulated amount is 1532.60 $
Step-by-step explanation:
<u>a)</u><u> The preset value equation is given by this formula:</u>

where:
- T is the period in years (T = 10 years)
- r is the annual interest rate (r=0.08)
So we have:
Now we just need to solve this integral.

The present value is 688.64 $
<u>b)</u><u> The accumulated amount of money flow formula is:</u>

We have the same equation but whit a term that depends of τ, in our case it is 10.
So we have:
The accumulated amount is 1532.60 $
Have a nice day!
Answer:
.
Step-by-step explanation:
Is that it the whole question?