Question

0.061 An investor is presented with a choice of two investments: an established clothing store and a new computer store. Each choice requires the same initial investment and each produces a continuous income stream of 4%, compounded continuously. The rate of flow of income from the clothing store is f(t) = 14,000, and the rate of flow of income from the computer store is expected to be g(t) = 13,000 e Compare the future values of these investments to determine which is the better choice over the next 5 years. The future value of the clothing store is $ (Round to the nearest dollar as needed.) The future value of the computer store is $ (Round to the nearest dollar as needed.) Which store is the better investment over the next 5 years? The store is the better investment.

Answer 1

= eft fur eo, out (400604520-04 12000 20-066 Clothing store f(t) = 14000, 7=4% out dt a 140002 14000 0.04615 -0.04 277490.97 - 7749) computer store, gitla oroft 13000 fraes gut eart dit 5 0-0415) 0-2 Fv ,84% 5 e oro2t * 200465) JS o'zi (0.28 68361 db e 13000 e り 283496-43 =83496 M Computer store is better Investment