Question: Elam, a contractor, just signed a contract with a developer to provide services in a new housing development. The developer has agreed to pay Elam

Elam, a contractor, just signed a contract with a developer to provide services in a new housing development. The developer has agreed to pay Elam $32,475 in 5 years and another $69,404 13 years from today. Elam anticipates costs of $13,246 10 years from today and another $20,274 cost 18 years from today. What is the total present value of the contract to Elam if the interest rate is 4.52% compounded annually?

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Answer I Total present value of contract is 4743841 Step 1 Interest rate pa compounded annually 452 ... View full answer

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