Tracy Purchased a 15-Year Franchise for a Computer Outlet Store

question 122

Multiple Choice

Tracy purchased a 15-year franchise for a computer outlet store that is expected to generate income at the rate of dollars/year. If the prevailing interest rate is 10% / year compounded continuously, find the present value of the franchise. (Hint: Use the formula of the present value .) Please round the answer to the nearest cent.

• A) $620,883.01
• B) $709,580.59
• C) $745,059.62
• D) $931,324.52
• E) $558,794.71

---

Definitions:

Health Care Providers

Entities, including professionals and organizations, that offer medical services to treat and manage patients' health.

Advance Directive

A legal document in which an individual specifies decisions about their healthcare, should they become unable to make these decisions in the future.

Income-Producing

Refers to assets or activities that generate earnings, profit, or revenue.

Real Property

Land and anything permanently attached to it, including buildings and structures, classified legally as immovable.