Answer:
The answer is 90990.394
Explanation:
To know how much is she willing to pay, we need to insert values into the future value formula and solve it for present value.
The data from this problem is:
i = 0.09
n= 5
F = 140000
The future value formula is:
F= P(1+i)^n where;
(1+i)^n reads as 1 + i to the power n
Substituting values and solving for p, we get p =90990.394