An investor is presented with a choice of two investments: an established clothing store and a new bookstore. Each choice requires the same initial investment and each produces a continuous income stream of 3%, compounded continuously. The rate of flow of income from the clothing store is f(t)=12,000, and the rate of flow of income from the book store is expected to be g(t)=10,000e^0.05t. Compare the future values of these investments to determine which is the better choice over the next 2 years.
An investor is presented with a choice of two investments: an established clothing store and a new bookstore. Each choice requires the same initial investment and each produces a continuous income stream of 3%, compounded continuously. The rate of flow of income from the clothing store is f(t)=12,000, and the rate of flow of income from the book store is expected to be g(t)=10,000e^0.05t. Compare the future values of these investments to determine which is the better choice over the next 2 years.
Chapter10: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 442RE: Jerome invests $18,000 at age 17. He hopes the investments will be worth $30,000 when he turns 26....
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An investor is presented with a choice of two investments: an established clothing store and a new bookstore. Each choice requires the same initial investment and each produces a continuous income stream of 3%, compounded continuously. The rate of flow of income from the clothing store is f(t)=12,000, and the rate of flow of income from the book store is expected to be g(t)=10,000e^0.05t. Compare the future values of these investments to determine which is the better choice over the next 2 years.
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