Question

*The State of Georgia decided to fund a program for restoring and maintaining local museums. The first cost is $250,000 now, and an additional cost of $80,000 every 8 years forever. The perpetual equivalent annual worth (in years 1 through infinity) of this program at an interest rate of 12% per year is equal to: **The answers presented below were calculated using the appropriate factors from interest tables including all their decimal places** -$110,000 -$304,202 -$36,504 -$31,996

Answer 1

i = 12%

n = 8

The perpetual equivalent annual worth:-

-250000*0.12 -80000*(A/F,12%,8)

= -30000-80000*(0.081303)

= -30000-6504.22

= -36504

Option(C)