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