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Ivan
2 years ago
15

20 pts please help!

Mathematics
2 answers:
stepladder [879]2 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]2 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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