Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At age 35, Cynthia earns her MBA and accepts a position as a vice president of an asphalt company. assume that she will retire at

image text in transcribed

image text in transcribed
At age 35, Cynthia earns her MBA and accepts a position as a vice president of an asphalt company. assume that she will retire at the age of 65, having received an annual salary of $85,000, and that the Interest rate Is 5%, compounded continuously. a) What is the accumulated present value of her position? b) What is the accumulated future value of her position? CE)\" __ a) The accumulated present value of her position is $D. (Round to the nearest ten dollars as needed.) Find the accumulated future value of the continuous income stream at rate R'(t), for the given time T, and interest " rate It, compounded continuously. | ' R(t) = $300,000, T = 15 years, it = 5% WrmFm The accumulated future value is 5D. (Round to the nearest ten dollars as needed.) Bob and Dottie Turner have a new grandchild, William. They want to create a trust fund for him that will yield $250,000 on his 18th birthday. a) What lump sum would they have to deposit now at 5.5%, compounded continuously, to achieve $250,000? ' b) Bob and Dottie decide instead to invest a constant money stream of R(t) dollars per year. Find R(t) such that the accumulated future value of the continuous money stream is $250,000, assuming an interest rate of 5-5%, compounded continuously. I|\\ i _ .. ._ .___ ._m,__._..__}_ _. I | a) To achieve $250,000, they would have to deposit $|j. (Round to the nearest cent as needed.) In 2002 (t = 0), the wortd consumption of a natural resource was approximately 12 trillion cubic feet and was growir exponentially at about 5% per year. If the demand continues to grow at this rate, how many cubic feet of this natun resource will the world use from 2002 to 2007? E) The approximate amount of resource used is D trillion cubic feet. (Round up to the nearest trillion.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Computational Invariant Theory

Authors: Harm Derksen, Gregor Kemper

2nd Edition

3662484226, 9783662484227

More Books

Students also viewed these Mathematics questions