A company has set aside $10 million to promote a new product. The money is to be spent continuously over a 3 year period(during which it is assumed that the sales will offset expenses). If the $10 million is placed in an account that earns: A). 12% per year - compounded continuously B). 10.75% per year - compounded continuously

What is the maximum rate at which money can be withdrawn during the 3 year period?

Answers: A). $3,969,256 per year B). $3,899,674 per year

From the above problem, how much money must be placed in the account if $4 million is to be spent on a continuous basis each year, and the interest rate is 10% per year, compounded continuously? Answer: $10,367,271

NO EXCEL-- NEED STEP By STEP Solutions please :)