An investor is presented with a choice of two investments: an established clothing store and a new book store. Each choice requires the same initial investment and each produces a continuous income stream of 6%, compounded continuously. The rate of flow of income from the clothing store is f(t) = 18,000, and the rate of flow of income from the book store is expected to be g(t) = 16,000 e 0.03t Compare the future values of these investments to determine which is the better choice over the next 2 years. ...... The future value of the clothing 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 book store. Each choice requires the same initial investment and each produces a continuous income stream of 6%, compounded continuously. The rate of flow of income from the clothing store is f(t) = 18,000, and the rate of flow of income from the book store is expected to be g(t) = 16,000 e 0.03t Compare the future values of these investments to determine which is the better choice over the next 2 years. ...... The future value of the clothing store is $. (Round to the nearest dollar as needed.)

Intermediate Algebra

19th Edition

ISBN:9780998625720

Author:Lynn Marecek

Publisher:Lynn Marecek

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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