Answer:
No she should not sell this gown and should not accept the offer.
Step-by-step explanation:
To assess whether she should sell the gown or not, we need to calculate the one year future value of the payment she is getting today for the gown.
The future value of $160000 after one year will be:
Future value = Present value ( 1 + r )
Where r is the required rate or interest rate.
Future value = 160000 ( 1 + 0.07) = $171200
The cost to Rosa will have a value of $180000 in one year.
There is a loss to Rosa of $8800 on this sale.
Loss = 171200 - 180000 = $8800