banganX

2021-08-20

The price of bond.

Given: The maintenance cost for 10 years is $25000.

The maintenance cost from 10 years to infinity years is $35000.

The rate of interest is$15\mathrm{\%}$ .

Given: The maintenance cost for 10 years is $25000.

The maintenance cost from 10 years to infinity years is $35000.

The rate of interest is

Delorenzoz

Skilled2021-08-21Added 91 answers

Calculation:

Write the equation for present worth of 10 years.

Here, present worth is P, annual value is A, rate of interest is i, and number of years is n.

Substitute $25000 for A,

Write the equation for present worth of infinity years.

Substitute $35000 for A,

Conclusion:

Therefore, the correct option is (d) $233334.

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