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Finance 15 Online
OpenStudy (anonymous):

ABC Groundworks maintains shopping mall parking lots under a long-term 10-year contract. ABC is charging a flat-rate of $20,000 for year 1 and then it increases by $1,000 per year through year 10. a) Determine the future worth at EOY 10 of the service contract at an interest rate of 5% per year. b) Determine the present value of the service contract at an interest rate of 5% per year.

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