Question

Suppose that a printing firm considers its production as a continuous income stream. If the annual...

Suppose that a printing firm considers its production as a continuous income stream. If the annual rate of flow at time t is given by

f(t) = 93.9e−0.8(t + 3)

in thousands of dollars per year, and if money is worth 6% compounded continuously, find the present value and future value (in dollars) of the presses over the next 10 years. (Round your answers to the nearest dollar.)

present value$

future value$

0 2
Add a comment Improve this question Transcribed image text
Answer #1

Present value S f(t) e-** dt Putting values -0.8 (6+3) 10 -0.06€ f dt 93.9 -0.8 = 9.90344 mutiply by love PV = 9902 (Nendest

Add a comment
Know the answer?
Add Answer to:
Suppose that a printing firm considers its production as a continuous income stream. If the annual...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • The income from an established chain of laundromats is a continuous stream with its annual rate...

    The income from an established chain of laundromats is a continuous stream with its annual rate of flow at time t given by f(t) = 120,000 (dollars per year). If money is worth 3% compounded continuously, find the present value and future value of this chain over the next 5 years. (Round your answers to the nearest dollar.) present value      $ future value $

  • A company that services a number of vending machines considers its income as a continuous stream...

    A company that services a number of vending machines considers its income as a continuous stream with an annual rate of flow at time t given by f(t) = 140e−0.4t in thousands of dollars per year. Find the income from this stream over the next 4 years. (Round your answer to one decimal place.) thousand dollars

  • An oil company models the income derived from the continuous production of oil as a continuous...

    An oil company models the income derived from the continuous production of oil as a continuous income stream using a function f(t) where f(t) = 200e ^ (- 0.1t) in thousands of dollars per year, where t is in years. Calculate the total income derived from pumping oil after 3 years. Give your answer in thousands of dollars to the nearest thousand dollars. Do not include commas on the dollar symbol in your answer An oil company models the income...

  • The future value at 5.5% Interest, compounded continuously for 7 years of the continuous income stream...

    The future value at 5.5% Interest, compounded continuously for 7 years of the continuous income stream with rate of flow f(t) = 2.250 -0.021 is $18,008. Compute the interest earned Type an integer or a decimal)

  • Suppose that a vending machine service company models its income by assuming that money flows continuously...

    Suppose that a vending machine service company models its income by assuming that money flows continuously into the machines, with the annual rate of flow given by f(t) = 180e0.04t in thousands of dollars per year. Find the total income from the machines over the first 5 years. (Round your answer to the nearest thousand dollars.) thousand dollars

  • 2. The income from a new chain of bubble tea breweries called "Dubble Bubble is projected...

    2. The income from a new chain of bubble tea breweries called "Dubble Bubble is projected to be a continuous income stream with a rate of income function f(t)330,000 15,000t dollars per year, where time t is measured in years, with t being now. Assume money can earn interest of 4% p.a. compounded continuously. Hint: for the integrals below there is a factor of 1000 you should take out the front. (a) What is the total income from the bubble...

  • (1 point) Your rich uncle the bequest require that this income stream be paid continuously into a...

    (1 point) Your rich uncle the bequest require that this income stream be paid continuously into a specific savings account that will not be available to you for 15 years. This account earns 4.8% interest, compounded continuously. to you a continuous, constant income stream of $2000 per year for the next 15 years. The terms of What is the present value of the bequest? 21385.322 How much money would the bequest be worth (including all interest accrued) after 15 years?...

  • 0.061 An investor is presented with a choice of two investments: an established clothing store and...

    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...

  • A franchise models the profit from its store as a continuous income stream with a monthly...

    A franchise models the profit from its store as a continuous income stream with a monthly rate of flow at time t given by f(t) = 4000e0.002t    (dollars per month). When a new store opens, its manager is judged against the model, with special emphasis on the second half of the first year. Find the total profit for the second 6-month period (t = 6 to t = 12). (Round your answer to the nearest dollar.)

  • Suppose that $6,000 is placed in a bank account at the end of each quarter over...

    Suppose that $6,000 is placed in a bank account at the end of each quarter over the next 11 years. What is the future worth at the end of 11 years when the interest rate is 15% compounded at the given intervals? (a) Quarterly (b) Monthly (c) Continuously (a) The future worth will be $ 648345 . (Round to the nearest dollar.) (b) The future worth will be $ 656,400. (Round to the nearest dollar.) (c) The future worth will...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT