Company C showed a profit of $1.4 million last year. The CEO of the company expects the profit to decrease by 8% each year over the next five years and the profits will be continuously invested in an account bearing a 4.75% APR compounded continuously. (a) Write the flow rate, R, of the income stream. (Let t represent the number of years after the company showed profit of $1.4 million.) R(t) = million dollars per year (b) Calculate the 5-year future value. (Round your answer to three decimal places.) $ million (c) Calculate the 5-year present value. (Round your answer to three decimal places.) $ million
Company C showed a profit of $1.4 million last year. The CEO of the company expects the profit to decrease by 8% each year over the next five years and the profits will be continuously invested in an account bearing a 4.75% APR compounded continuously. (a) Write the flow rate, R, of the income stream. (Let t represent the number of years after the company showed profit of $1.4 million.) R(t) = million dollars per year (b) Calculate the 5-year future value. (Round your answer to three decimal places.) $ million (c) Calculate the 5-year present value. (Round your answer to three decimal places.) $ million
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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![**Company C Profit Analysis**
Company C showed a profit of $1.4 million last year. The CEO of the company expects the profit to decrease by 8% each year over the next five years, and the profits will be continuously invested in an account bearing a 4.75% APR compounded continuously.
1. **Writing the Flow Rate, \( R \), of the Income Stream**
Let \( t \) represent the number of years after the company showed a profit of $1.4 million.
\[ R(t) = \_\_\_\_\_\_\_ \text{ million dollars per year} \]
2. **Calculating the 5-Year Future Value**
(Round your answer to three decimal places.)
\[
\$\_\_\_\_\_\_\_ \text{ million}
\]
3. **Calculating the 5-Year Present Value**
(Round your answer to three decimal places.)
\[
\$\_\_\_\_\_\_\_ \text{ million}
\]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbcfa3f98-eb44-4f4d-86d7-8c297108b84f%2F56bced52-43f2-42ba-b5a6-3cc0ee502e8f%2F6qm8lpp_processed.png&w=3840&q=75)
Transcribed Image Text:**Company C Profit Analysis**
Company C showed a profit of $1.4 million last year. The CEO of the company expects the profit to decrease by 8% each year over the next five years, and the profits will be continuously invested in an account bearing a 4.75% APR compounded continuously.
1. **Writing the Flow Rate, \( R \), of the Income Stream**
Let \( t \) represent the number of years after the company showed a profit of $1.4 million.
\[ R(t) = \_\_\_\_\_\_\_ \text{ million dollars per year} \]
2. **Calculating the 5-Year Future Value**
(Round your answer to three decimal places.)
\[
\$\_\_\_\_\_\_\_ \text{ million}
\]
3. **Calculating the 5-Year Present Value**
(Round your answer to three decimal places.)
\[
\$\_\_\_\_\_\_\_ \text{ million}
\]
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