Question
(a) An investment account earns 10% interest compounded continuously. At what (constant, continuous) rate must a parent deposit money into such an account in
(a) An investment account earns 10% interest compounded continuously. At what (constant, continuous) rate must a parent deposit money into such an account in order to save $100,000 in 9 years for a child's college expenses? Give the result in dollars per year. Round your answer to the nearest dollar. $ 6851.19 eTextbook and Media per year Your answer is incorrect. (b) If the parent decides instead to deposit a lump sum now in order to attain the goal of $100,000 in 9 years, how much must be deposited now? Round your answer to two decimal places. $ i Harley-Davidson Inc. manufactures motorcycles. During the years following 2018 (the company's 115th anniversary year), the company's gross income can be approximated by 1.97 -0.137 billion dollars per year, where t is time in years since January 1, 2018. Assume this rate holds through January 1, 2023, and assume a continuous interest rate of 2.3% per year. (a) What was the income of the Harley-Davidson Company in 2018 (t = 0)? What is the projected gross income in 2022 (t = 4)? The gross income in 2018 was 1.97 The projected gross income in 2022 is 1.45 billion dollars. billion dollars. (b) What was the present value, on January 1, 2018, of Harley-Davidson's gross income for the four years from January 1, 2018 to January 1, 2022? Round your answer to two decimal places. i !billion dollars (c) What is the future value, on January 1, 2022, of the gross income for the preceding 4 years? billion dollars
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