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For #2, part a = 50,000. I've posted this once before and the person answered incorrectly :( any help is appreciated! 1. Find the present
For #2, part a = 50,000.
I've posted this once before and the person answered incorrectly :( any help is appreciated!
1. Find the present value of a $15,000 annual income stream if it is invested immediately as it is received into an account paying 12 % interest compounded continuously for 20 years. Round your answer to the nearest cent. 2. A company can buy a machine that is expected to increase the company's net income by $10,000 each year for the 5-year life of the machine. The company also estimates that for the next 5 years, the money they invest from that continuous stream will earn 10 % compounded continuously. Round all answers to the nearest cent. a. Find the total amount of money produced by the machine over its 5-year life. $ b. Find the future value of the income stream. $ c. Find the present value of the income stream. $Step by Step Solution
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