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Please try to zoom you should be able to see the question clearly! An investor is presented with a choice of two investments: an established
Please try to zoom you should be able to see the question clearly!
An investor is presented with a choice of two investments: an established furniture store and a new book store. Each choice requires the same initial investment and each produces a continuous income stream of 4%, compounded continuously. The rate of flow of income from the furniture store is f(t) = 12,000, and the rate of flow of income from the book store is expected to be g(t) = 11,000 e 0.06 Compare the future values of these investments to determine which is the better choice over the next 6 years. The future value of the furniture store is $ (Round to the nearest dollar as needed.) The future value of the book store is $[. (Round to the nearest dollar as needed.) Which store is the better investment over the next 6 years? The store is the better investment. Starting at age 35, you deposit $2000 a year into an IRA account for retirement. Treat the yearly deposits into the account as a continuous income stream. If money in the account earns 7%, compounded continuously, how much will be in the account 30 years later, when you retire at age 65? How much of the final amount is interest? What is the value of the IRA when you turn 65? 16332 (Round to the nearest dollar as needed.) How much of the future value is interest? $14332 (Round to the nearest dollar as needed.)Step by Step Solution
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