1. A math tee shirt business is expected to generate $40,000 in revenue per year for the next 10 years. If the income is reinvested
1. A math tee shirt business is expected to generate $40,000 in revenue per year for the next 10 years. If the income is reinvested in the business at a rate of 5% per year compounded continuously, determine the future value of this income stream at the end of 10 years. Future value (exact value) = dollars Future value (rounded to the nearest cent) = dollars 2. A math tee shirt business is expected to generate $35,000 in revenue per year for the next 5 years. If the income is reinvested in the business at a rate of 3% per year compounded continuously, determine the present value of this income stream. Present value (exact value) = dollars Present value (rounded to the nearest cent) = dollars Suppose you plan to have $80,000 in 20 years from now and you can invest your savings at 5% compounded continuously. Assuming you can save the same amount of money each year, how much do you need to save on a yearly basis in order to achieve your goal? Hint: Treat your savings as an income stream. Yearly savings (exact value) = dollars Yearly savings (rounded to the nearest cent) = dollars
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