An investor is presented with a choice of two investments: an established clothing store and a new computer store. Each choice requires the same initial investment and each produces a continuous income stream of 5%, compounded continuously. The rate of flow of income from the clothing store is f(t) = 12,000, and the rate of flow of income from the computer store is expected to be g(t) = 10,000e 0.03t .03t Compare the future values of these investments to determine which is the better choice over the next 5 years. The future value of the clothing store is $ 68,166 (Round to the nearest dollar as needed.) The future value of the computer store is $ (Round to the nearest dollar as needed.)
An investor is presented with a choice of two investments: an established clothing store and a new computer store. Each choice requires the same initial investment and each produces a continuous income stream of 5%, compounded continuously. The rate of flow of income from the clothing store is f(t) = 12,000, and the rate of flow of income from the computer store is expected to be g(t) = 10,000e 0.03t .03t Compare the future values of these investments to determine which is the better choice over the next 5 years. The future value of the clothing store is $ 68,166 (Round to the nearest dollar as needed.) The future value of the computer store is $ (Round to the nearest dollar as needed.)
Chapter10: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 442RE: Jerome invests $18,000 at age 17. He hopes the investments will be worth $30,000 when he turns 26....
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No handwritten responses. I need help with the future value of the computer. Please help with a step by step breakdown in laymen terms.
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