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1. Find the accumulated present value of an investment over a 6 year period if there is a continuous money flow of $12,000 per year
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Find the accumulated present value of an investment over a 6 year period if there is a continuous money flow of $12,000 per year and the interest rate is 0.7% compounded continuously. _ A company is considering expanding their production capabilities with a new machine that costs $86,000 and has a projected lifespan of 8 years. They estimate the increased production will provide a constant $11,000 per year of additional income. Money can earn 1.2% per year, compounded continuously. Should the company buy the machine? No, the present value of the machine is less than the cost by 3 '/ 0" _ over the life of the machine Find the accumulated future value of a 12-year $280,000 continuous income stream that has been compounded continuously at 4.4%. Round to the nearest dollar.Find the accumulated present value of a 6-year $290,000 continuous income stream that has been compounded continuously at 3.3%. Round to the nearest dollar. 5:] Lucky Larry wins $11,000,000 in a state lottery. The standard way in which the state pays such lottery winnings is at a constant rate of $550,000 per year for 20 years. Round your answer to the nearest $10. If Lucky invests each payment from the state at 8% compounded continuously, what is the accumulated future value of the income stream? _ What is the accumulated present value of the income stream at 8%, compounded continuously? (This amount represents what the state has to invest at the start of its lottery payments, assuming the 8% interest rate holds.) _Step by Step Solution
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