A major electronics manufacturer expects to generate additional revenue from its recently won government contract. The company forecasts that the revenue will be $20,000 in the first year, but will decline by $1500 every year for the 5 year life of the contract. What is the future worth of total revenue at an interest rate of 7% per year? The answer is closest to: 98,928 70,534 82,579 85,550

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A major electronics manufacturer expects to generate additional revenue from its recently won government contract. The
company forecasts that the revenue will be $20,000 in the first year, but will decline by $1500 every year for the 5 year
life of the contract. What is the future worth of total revenue at an interest rate of 7% per year? The answer is closest
to:
98,928
70,534
82,579
85,550
Transcribed Image Text:A major electronics manufacturer expects to generate additional revenue from its recently won government contract. The company forecasts that the revenue will be $20,000 in the first year, but will decline by $1500 every year for the 5 year life of the contract. What is the future worth of total revenue at an interest rate of 7% per year? The answer is closest to: 98,928 70,534 82,579 85,550
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