Jenkins Security Has Learned That a Rival Has Offered to Supply

question 30

Multiple Choice

Jenkins Security has learned that a rival has offered to supply a parking garage with security for ten years for $50,000 up front and a further $20,000 per year.If Jenkins Security offers to provide security for eight years for an upfront cost of $70,000 and a separate yearly payment,what is the maximum that this yearly payment can be so that Jenkins' offer matches the equivalent annual annuity of their rival's offer? (Assume a cost of capital of 6%.)

• A)$13,095
• B)$13,458
• C)$13,995
• D)$15,521
• E)$16,112

---

Definitions:

Hemophilia

A medical condition, usually inherited, in which the ability of the blood to clot is severely reduced, causing the sufferer to bleed severely from even a slight injury.

X-Linked Recessive

A pattern of genetic inheritance where the gene causing the trait or disorder is located on the X chromosome; more common in males who have only one X chromosome.

Vasoocclusive Crisis

A painful episode that occurs in sickle cell anemia when sickled red blood cells block blood flow through vessels.

Sickle Cell Crisis

A severe, painful episode that occurs in people who have sickle cell anemia, caused by blockage of blood flow by misshaped red blood cells.