The Annual Cost of Capital (or Interest)

Roxanne invested $560,000 in a new business 7 years ago. The business was expected to bring in $8,000 each month for the next 26 years (in excess of all costs). The annual cost of capital (or interest rate) for this type of business was 7% with monthly compounding. What is the value of the business today? (Enter just the number in dollars without the $ sign or a comma and round o? decimals to the closest integer, i.e., rounding $30.49 down to $30 and rounding $30.50 up to $31.) 

Prof. Angela

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Calculate Price


Price (USD)
$