Jim Ryan, an owner of a Burger King restaurant, assumes that his restaurant will need a...

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Jim Ryan, an owner of a Burger King restaurant, assumes that his restaurant will need a new roof in 9 years. He estimates the

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Answer 1

Answer #1

EAR = [(1 +stated rate/no. of compounding periods) ^no. of compounding periods - 1]* 100

? = ((1+4/(4*100))^4-1)*100

Effective Annual Rate% = 4.0604

Future value = present value*(1+ rate)^time

11300 = Present value*(1+0.040604)^9

Present value = 7897.85

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Answer 2

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