A business is planning to purchase a piece of equipment that will produce a continuous stream of income for 8 years with rate of flow f(t) = 7,000. If the continuous income stream earns 6.55%, compounded continuously, what single deposit into an account earning the same interest rate will produce the same future value as the continuous income stream? (This deposit is called the present value of the continuous income stream.) What is the future value of the investment? $ 73,609 (Round to the nearest dollar as needed.) What is the present value of the investment?
A business is planning to purchase a piece of equipment that will produce a continuous stream of income for 8 years with rate of flow f(t) = 7,000. If the continuous income stream earns 6.55%, compounded continuously, what single deposit into an account earning the same interest rate will produce the same future value as the continuous income stream? (This deposit is called the present value of the continuous income stream.) What is the future value of the investment? $ 73,609 (Round to the nearest dollar as needed.) What is the present value of the investment?
Chapter6: Exponential And Logarithmic Functions
Section6.1: Exponential Functions
Problem 68SE: An investment account with an annual interest rateof 7 was opened with an initial deposit of 4,000...
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A business is planning to purchase a piece of equipment that will produce a continuous stream of income for 8 years with rate of flow f(t) = 7,000. If the continuous income stream earns 6.55%, compounded continuously, what single deposit into an account earning the same interest rate will produce the same future value as the continuous income stream? (This deposit is called the present value of the continuous income stream.)
How do you achieve these answers?
Transcribed Image Text:A business is planning to purchase a piece of equipment that will produce a continuous
stream of income for 8 years with rate of flow f(t) = 7,000. If the continuous income stream
earns 6.55%, compounded continuously, what single deposit into an account earning the
same interest rate will produce the same future value as the continuous income stream?
(This deposit is called the present value of the continuous income stream.)
What is the future value of the investment?
$ 73,609 (Round to the nearest dollar as needed.)
What is the present value of the investment?
$ 43,587 (Round to the nearest dollar as needed.)
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