Question

tream over he generated at the sea verwei + 20 thousand dollars/ye woening of the te he period is 5 sult of increas er of alcohol- eliminary data as been chang- 49. FUTURE VALUE Vegan Restaurant expect operation, revenue will be generar R(O) = 100 + 20 thousand number of years after the grand on If the prevailing rate of interest compounded continuously, what wil will be the value cod of 5 years? Find the Un country. 56. DIFFUSION A and outer introduced moles/I. Ver Shya into on 6.7 (page 484). restaurant's revenue stream at the end Hint: Use Formula (18). Section 6.7 (pace the sole propri + R ) effect. There war before the alcohol- st year the , an 50 FUTURE VALUE OF AN INVESTMENT Laura of Laura's Boutique, plans to invest R dollars/year into her savings account for now. If the bank pays interest at the rate pounded continuously, how much will account at the end of the 3-year period? 5 yess, starting ve of 3 yea com Laura bave in her ertain com- in weeks) is se an investment is 51. RATE OF RETURN ON AN INVESTMENT Suppose a expected to generate income at the rate of P(t) = 30,000 + 8001 er the If the is kept then the present value of prevailing interest brane ridge rganiza- dollars/year for the next 5 years. Find the pre the income from this investment if the prevailing rate is 5%/year compounded continuously. Hint: Use Formula (19), Section 6.7 (page 485). c(r) = mok 10's ember- 52. PRESENT VALUE OF A FRANCHISE Tracy purchased a 15-yes franchise for a computer outlet store that is expected to generate income at the rate of acre 57. AN she P(t) = 50,000 + 3000 wa lis- dollars/year. If the prevailing interest rate is 4%/year compounded continuously, find the present value of the income from the franchise. Hint: Use Formula (19), Section 6.7 (page 485). 53. CONSUMERS' SURPLUS FOR INFLATABLE CANOES Refer to sa 6.7. The demand function for Sea Hawk inflatable cand is given by d the who -cept p = 300 - 2(x + 1)In(x + 1) where p is the unit price in dollars and hundred) is the quantity dem (x20) in units on

51 and 52

Answer 1

Solution to QUESTION-50

Future Value of $10,000 after 5 Years at 3.00% interest rate compounded continuously

Here, we’ve amount invested = $10,000

Annual interest rate (r) = 3.00% per year

Number of years (n) = 5 Years

Compounding period = 365 Days

Therefore, the Future Value x [1 + (r/365)]nx365

= $10,000 x [1 + (0.03/365)]5x365

= $10,000 x [1 + 0.00008219178082]1825

= $10,000 x 1.161827081

= $11,618.27