Question

DITUGU U3120 0.19 PM Homework: Section 6.2 Enhanced Assignment Sav orScore: 0 of 1 pt 7 of 7 (7 complete) HW Score: 71.43%, 5 of 7 X 6.2.67-BE Question Help ade A business is planning to purchase a piece of equipment that will produce a continuous stream of income for 6 years with rate of flow f(t) = 13,000. If the continuous income stream earns 6.6%, compounded continuously, what single deposit into an account earning the same interest rate will produce the same future value as the continuous income stream? (This deposit is called the present value of the continuous income stream.) What is the future value of the investment? $ 95702 (Round to the nearest dollar as needed.) 08/ 07/1 What is the present value of the investment? 71. (Round to the nearest dollar as needed.) Sed Unil 30 Vi . More (1/1) (1/1) Enter your answer in the answer box and then click Check Answer (0/1) All parts showing Clear All Check Answer (0/1)

Answer 1

Answer: Given that 3 CH): 13.000 , Y = 0.666 , T = 6 ent Future value +(A) dr FV = *e*} + CO.obd)ce) (13000) e D -0.066t dt 0 -0.066t dt 0-396 : 13000 e 0 -0.066t 0.396 : 3000 e - 0.066 0 0.396 13000e [.. -0.396 e 0.066 0.066 13000 0.066 [-1 +°396] 9 5701-53 95702 Polesent value ;- Pert A 6.066) (6) 95702 - pe 0.396 95702 = pe P 95702 - e 0.396 e Present value : 64408.09 ~ P:64408