Ashley, Has Discovered Another Wine, Wine D

Ashley, has discovered another wine, wine D.Wine drinkers are willing to pay 70 dollars to drink it right now.The amount that wine drinkers are willing to pay will rise by 10 dollars each year that the wine ages.The interest rate is 10%.How much would Ashley be willing to pay for the wine if he buys it as an investment? (Pick the closest answer.)

A) 770 dollars
B) 100 dollars
C) 70 dollars
D) 75 dollars
E) 91 dollars

Correct Answer:

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