The annual operating and maintenance (O&M) expenses of a company are $195,000 at EOY 1 decreasing by $8,500 per year until EOY 10. If the annual interest rate is 10.75%, what is the future equivalent of the O&M expenses at EOY 10? O a. $2,825,227 O b. $3,737,481 OC. $974,778 O d. $2,706,096 e. $3,618,351

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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The annual operating and maintenance (0&M) expenses of a company are $195,000 at EOY 1
decreasing by $8,500 per year until EOY 10. If the annual interest rate is 10.75%, what is the
future equivalent of the O&M expenses at EOY 10?
of
O a. $2,825,227
O b. $3,737,481
O c. $974,778
O d. $2,706,096
O e. $3,618,351
Transcribed Image Text:The annual operating and maintenance (0&M) expenses of a company are $195,000 at EOY 1 decreasing by $8,500 per year until EOY 10. If the annual interest rate is 10.75%, what is the future equivalent of the O&M expenses at EOY 10? of O a. $2,825,227 O b. $3,737,481 O c. $974,778 O d. $2,706,096 O e. $3,618,351
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