For the year ending December 31, 2017, sales for Corporation Y were $65.21 billion. Beginning January 1, 2018 Corporation Y plans to invest 9.5% of their sales amount each year and they expect their sales to increase by 3% each year over the next three years. Corporation Y invests into an account earning an APR of 1.6% compounded continuously. Assume a continuous income stream. How much money will be in the investment account on December 31, 2020? Round your answer to three decimal places. 4.0 billion dollars How much money did Company Y invest in the account between January 1, 2018 and December 31, 2020? Round your answer to three decimal places. 4.0 billion dollars How much interest did Company Y earn between January 1, 2018 and December 31, 2020? Round your answer to three decimal places. If intermediate values are used, be sure to use the unrounded values to determine the answer. billion dollars Submit Answer
For the year ending December 31, 2017, sales for Corporation Y were $65.21 billion. Beginning January 1, 2018 Corporation Y plans to invest 9.5% of their sales amount each year and they expect their sales to increase by 3% each year over the next three years. Corporation Y invests into an account earning an APR of 1.6% compounded continuously. Assume a continuous income stream. How much money will be in the investment account on December 31, 2020? Round your answer to three decimal places. 4.0 billion dollars How much money did Company Y invest in the account between January 1, 2018 and December 31, 2020? Round your answer to three decimal places. 4.0 billion dollars How much interest did Company Y earn between January 1, 2018 and December 31, 2020? Round your answer to three decimal places. If intermediate values are used, be sure to use the unrounded values to determine the answer. billion dollars Submit Answer
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
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Please do not give image format

Transcribed Image Text:For the year ending December 31, 2017, sales for Corporation Y were $65.21 billion. Beginning January 1, 2018 Corporation Y plans to invest 9.5% of their sales amount each year and they expect their
sales to increase by 3% each year over the next three years.
Corporation invests into an account earning an APR of 1.6% compounded continuously. Assume a continuous income stream.
How much money will be in the investment account on December 31, 2020?
Round your answer to three decimal places.
billion dollars
How much money did Company Y invest in the account between January 1, 2018 and December 31, 2020?
Round your answer to three decimal places.
4.0✓
billion dollars
How much interest did Company Y earn between January 1, 2018 and December 31, 2020?
Round your answer to three decimal places. If intermediate values are used, be sure to use the unrounded values to determine the answer.
4.0✓
billion dollars
Submit Answer
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Step 1: Formula.
VIEWStep 2: Computation of sales amount for year 2018 , 2019 and 2020.
VIEWStep 3: Computation of amount of investment made each year.
VIEWStep 4: Computation of interest and balance of money in account for each year.
VIEWStep 5: Computation of money in investment account on 31 december 2020.
VIEWStep 6: Computation of amount of money invested between january 1 , 2018 and december 31 , 2020
VIEWStep 7: Computation of amount of interest earned between january 1 , 2018 and december 31 , 2020.
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