Jack sells his lawn-mowing business for $50,000 but the buyer wants to pay for it in two cash payments: $25,000 in two months from today and the balance in 1 year from today. How much will Jack need to receive as the final payment (in 12 months) if the interest rate he charges is 6% per annum compounding monthly?

Question 10Select one:

A.

$25,584.91

B.

$25,248.14

C.

$27,446.42

D.

$26,805.39