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Over the next 3 years a major electronics corporation will invest a continuous stream of R(t)=5.8+0.5t million dollars per year in an account earning 2.75%
Over the next 3 years a major electronics corporation will invest a continuous stream of R(t)=5.8+0.5t million dollars per year in an account earning 2.75% interest, compounded continuously. a) Find the 3-year principal investment. [Select] b) Find the 3-year future value. [Select] c) Find the interest earned on the account over the 3-year period. [Select] d) Find the 3-year present value. [Select] An aging, wealthy alumnus is writing his final will and testament. He plans to donate a large lump-sum of money for an annuity that will fund a long-term scholarship at the University. Assume the annuity has a fixed interest rate of 2.8%, compounded continuously, and needs to generate a continuous stream of R(t) = 30,000 dollars per year in scholarships. a) How much does the alumnus need to donate to support the scholarship for 20 years? (Select] b) How much does the alumnus need to donate to support the scholarship forever? [Select] 4
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