4. Two investments, A and B, produce a continuous income stream of 3%, compounded continuously. The rate of flow of income from investment A is f(t) 2000e0.034 and the rate of flow of income from investment B is expected to be g(t) = 3000. (a) Find the total income produced by each of the two investments over the 5-year period. (b) Find the future value, the accumulated amount of money flow, of each of the two investments for 5 years.

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
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4. Two investments, A and B, produce a continuous income stream of 3%,
compounded continuously. The rate of flow of income from investment A
is f(t) = 2000e0.03t and the rate of flow of income from investment B is
expected to be g(t) = 3000.
(a) Find the total income produced by each of the two investments over the
5-year period.
(b) Find the future value, the accumulated amount of money flow, of each
of the two investments for 5 years.
(c) Compute the interest earned by each investment over the 5-year period.
(d) Find the present value of each of the two investments.
(e) Interpret the answers determined in (a) to (d)
Transcribed Image Text:4. Two investments, A and B, produce a continuous income stream of 3%, compounded continuously. The rate of flow of income from investment A is f(t) = 2000e0.03t and the rate of flow of income from investment B is expected to be g(t) = 3000. (a) Find the total income produced by each of the two investments over the 5-year period. (b) Find the future value, the accumulated amount of money flow, of each of the two investments for 5 years. (c) Compute the interest earned by each investment over the 5-year period. (d) Find the present value of each of the two investments. (e) Interpret the answers determined in (a) to (d)
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