A company made annual payments for 8 years at an interest rate of 10%.
The annual cost was AED 80,000 in year-1 but this increased by AED 5,000 each year starting in year-2 up to year 8.
Answer the questions below but selecting the closest answer.
What is the present worth due to the base amount in year-1?
What is the present worth due to the gradient?
What is the total present worth in year-0?
A. AED 80,000
B. AED 426,792
C. AED 15,000
D. AED 95,020
E. AED 491,570
F. AED 80,144
G. AED 506,936
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