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The owner of a cemetery plans to offer a perpetual care service for gravesites. The owner estimates that it will cost $120 per year to maintain a gravesite. If the interest rate is 8%, what one time fee should be owner charged for the perpetual care service?A. $1500B. $120C. $96D. $12,000

Respuesta :

Answer:

Charge for perpetual care service will be $1500

So option (a) will be the correct option

Explanation:

We have given the estimated cost to maintain a gravesites is $120 per year

Interest rate = 8 % = 0.08

We have to find the fee which owner charged for the perpetual care service

The perpetual charge is given by

[tex]=\frac{estimated\ cost}{rate\ of\ interest}=\frac{120}{0.08}=$1500[/tex]

Charge for perpetual care service will be $1500

So option (a) will be the correct option

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