Tracy purchased a 15-year franchise for a computer outlet store that is expected to generate income at the rate of dollars/year.If the prevailing interest rate is 10% / year compounded continuously, find the present value of the franchise.(Hint: Use the formula of the present value .) Please round the answer to the nearest cent.
A)$620,883.01
B)$709,580.59
C)$745,059.62
D)$931,324.52
E)$558,794.71

Question

Tracy purchased a 15-year franchise for a computer outlet store that is expected to generate income at the rate of  dollars/year.If the prevailing interest rate is 10% / year compounded continuously, find the present value of the franchise.(Hint: Use the formula of the present value  .) Please round the answer to the nearest cent.
A)$620,883.01 
B)$709,580.59 
C)$745,059.62 
D)$931,324.52 
E)$558,794.71

Quizplus · Accepted Answer

The Answer of Tracy purchased a 15-year franchise for a computer outlet store that is expected to generate income at the rate of  dollars/year.If the prevailing interest rate is 10% / year compounded continuously, find the present value of the franchise.(Hint: Use the formula of the present value  .) Please round the answer to the nearest cent.
A)$620,883.01 
B)$709,580.59 
C)$745,059.62 
D)$931,324.52 
E)$558,794.71

Tracy Purchased a 15-Year Franchise for a Computer Outlet Store