A multinational engineering consulting firm that wants to provide resort accommodations to special clients is considering the purchase of a three-bedroom lodge in upper Montana that will cost $250,000. The property in that area is rapidly appreciating in value because people anxious to get away from urban developments are bidding up the prices. If the company spends an average of $500 per month for utilities and the investment increases at a rate of 0.75% per month, how long would it be before the company could sell the property for $100,000 more than it has invested in it? O a. 5.4 years O b.4.1 years O c. 4.6 yearS O d. 5.2 years

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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A multinational engineering consulting firm that wants to provide resort accommodations to special clients is
considering the purchase of a three-bedroom lodge in upper Montana that will cost $250,000. The property in that
area is rapidly appreciating in value because people anxious to get away from urban developments are bidding up
the prices. If the company spends an average of $500 per month for utilities and the investment increases at a rate
of 0.75% per month, how long would it be before the company could sell the property for $100,000 more than it has
invested in it?
О а. 5.4 years
O b.4.1 years
О с. 4.6 years
O d. 5.2 years
Transcribed Image Text:A multinational engineering consulting firm that wants to provide resort accommodations to special clients is considering the purchase of a three-bedroom lodge in upper Montana that will cost $250,000. The property in that area is rapidly appreciating in value because people anxious to get away from urban developments are bidding up the prices. If the company spends an average of $500 per month for utilities and the investment increases at a rate of 0.75% per month, how long would it be before the company could sell the property for $100,000 more than it has invested in it? О а. 5.4 years O b.4.1 years О с. 4.6 years O d. 5.2 years
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