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The revenue of General Motors Company (GM) in December 2008 was $148.98 billion. Assume that GM continues to invest 3% of the 2008 revenue figure
The revenue of General Motors Company (GM) in December 2008 was $148.98 billion. Assume that GM continues to invest 3% of the 2008 revenue figure continuously throughout each year, beginning at the end of December 2008, into an account that pays interest at a rate of 4.8% compounded continuously. Calculate the value of the account in December 2012. () How much would GM have had to invest at the end of December 2008, in one lump sum, into this account to build the same 4-year future value as the one found in part (a)? ()
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