Ask Question
1 March, 06:07

The owner of a cemetery plans to offer a perpetual care service for grave sites. The owner estimates that it will cost $120 per year to maintain a grave site. If the interest rate is 8 percent, what one-time fee should the owner charge for the perpetual care service

+3
Answers (1)
  1. 1 March, 09:52
    0
    One-time fee is $1,500

    Explanation:

    The perpetual care service is an annuity to the owner

    and the one-time fee is a present value therefore to calculate it we will use Present value Annuity fomula

    PV = c/r

    = $120/0.08

    = $1,500
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The owner of a cemetery plans to offer a perpetual care service for grave sites. The owner estimates that it will cost $120 per year to ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers