Question

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

Answer 1

Charge for perpetual care service will be $1500

So option (a) will be the correct option

Step-by-step 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

`=(estimated\ cost)/(rate\ of\ interest)=(120)/(0.08)=$1500`

Charge for perpetual care service will be $1500

So option (a) will be the correct option