dollars/year for the next 6 years. If the interest rate is 3.9%/year compounded continuously, find the future value of this income stream after 6 years. Enter you answer to the nearest dollar.
dollars/year for the next 6 years. If the interest rate is 3.9%/year compounded continuously, find the future value of this income stream after 6 years. Enter you answer to the nearest dollar.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:An newly opened restaurant is projected to generate revenue at a rate of
R(1) = 120000
dollars/year for the next 6 years. If the interest rate is 3.9%/year compounded continuously, find the
future value of this income stream after 6 years. Enter you answer to the nearest dollar.
A = $
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A university is setting up an entrance award which will provide $3000 to a student each year, beginning
next year. If the annual effective rate of interest is 3.0% compounded continuously, what is the amount
of money required to fund the endowment? (Enter your answer to the nearest dollar.)
Answer: $
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