Question

A person promised to pay a fixed amount of 7,200 at the end of each year for seven years and a one-time payment of117,400 at the end of the 7th year. What is the total amount that the person will pay over the seven years?

Answer 1

The person will pay a total amount of $167,800 over the seven years.

Step-by-step explanation:

To find the total amount that the person will pay over the seven years, we need to add up all the yearly payments and the one-time payment at the end of the 7th year.

The yearly payment is $7,200, and it will be made for seven years. So, the total amount from the yearly payments is 7 x $7,200 = $50,400.

Then, there is a one-time payment of $117,400 at the end of the 7th year. So, the total amount from the one-time payment is $117,400.

To calculate the total amount that the person will pay over the seven years, we add the total amount from the yearly payments and the total amount from the one-time payment:

Total amount = $50,400 + $117,400 = $167,800.