A)Cavincare has 50 years remaining on a service contract with Martin, Inc. Today, Martin paid $120,000 for services received last year and the annual payment increases by 2.5% each year. The firms required rate of return is 15%. What is the value of the contract to Cavincare? (Do not round intermediate calculations. Round the final answer to the nearest whole dollar amount.)

B)The simple interest rate charged per period multiplied by the number of payment periods per year gives the:

effective annual interest rate

simple interest rate

annual percentage rate

compound interest rate