Question

The rate of a continuous money flow starts at $800 and increases exponentially at 3% per...

The rate of a continuous money flow starts at $800 and increases exponentially at 3% per year for 5 years. Find the present value and final amount if interest earned is 4% compounded continuously.

a) The present value is?

b) The final amount is?

(Do not round until the final answer. Then round to the nearest cent as needed.)

Math   Calculus   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

An exponential growth is e^r, where r is rate of growth and e is 2.718.

Present value is $4251.17

Final Value is $4789.35

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
When interest is compounded continuously, the amount of money increases at a rate proportional to the...
When interest is compounded continuously, the amount of money increases at a rate proportional to the amount S present at time t, that is, dS/dt = rS, where r is the annual rate of interest. (a) Find the amount of money accrued at the end of 8 years when $5000 is deposited in a savings account drawing 5 3 4 % annual interest compounded continuously. (Round your answer to the nearest cent.) $ (b) In how many years will the...
When interest is compounded continuously, the amount of money increases at a rate proportional to the...
When interest is compounded continuously, the amount of money increases at a rate proportional to the amount S present at time t, that is, dS/dt = rS, where r is the annual rate of interest. (a) Find the amount of money accrued at the end of 8 years when $5000 is deposited in a savings account drawing 5 3/4 % annual interest compounded continuously. (Round your answer to the nearest cent.) $ (b) this is the part I’m having the...
Find the compound amount for the deposit and the amount of interest earned. $7600 at 8...
Find the compound amount for the deposit and the amount of interest earned. $7600 at 8 % compounded quarterly for 8 years. The compound amount after 8 years is? (Do not round until the final answer. Then round to the nearest cent as needed.) The amount of interest earned is (Do not round until the final answer. Then round to the nearest cent as needed.)
Find the accumulates present value of the following continuous income stream at rate​ R(t), for the...
Find the accumulates present value of the following continuous income stream at rate​ R(t), for the given time T and interest rate​ k, compounded continuously R(t)=0.01t+100, T=10, k=4% Round to nearest cent as needed
1. A 6?-month ?$9000 Treasury bill with discount rate 8.671?% was sold in 2009. Find a....
1. A 6?-month ?$9000 Treasury bill with discount rate 8.671?% was sold in 2009. Find a. the price of the? T-bill, and b. the actual interest rate paid by the Treasury. a. The price of the? T-bill is ?$ ?(Round to the nearest dollar as? needed.) 2. Suppose that ?$30,000 is invested at 7?% interest. Find the amount of money in the account after 8 years if the interest is compounded annually. If interest is compounded? annually, what is the...
Find the present value P of a continuous income flow of c(t) dollars per year using...
Find the present value P of a continuous income flow of c(t) dollars per year using P = t1 c(t)e−rt dt, 0 where t1 is the time in years and r is the annual interest rate compounded continuously. (Round your answer to the nearest dollar.) c(t) = 100,000 + 4000t, r = 5%, t1 = 8
The function f(x)=900 represents the rate of flow of money in dollars per year. Assume a...
The function f(x)=900 represents the rate of flow of money in dollars per year. Assume a 5 - year period at 5% compounded continuously. Find (A) the present value, and (B) the accumulated amount of money flow at t=5
The function F(X)= 700e^0.03x represents the rate of flow of money in dollars per year. Assume...
The function F(X)= 700e^0.03x represents the rate of flow of money in dollars per year. Assume a 10 year period at 5 percent compounded continuously. A. Find the present value B. the accumulated amount of money flow at t=10?
1) When interest is compounded continuously, the amount of money increases at a rate proportional to...
1) When interest is compounded continuously, the amount of money increases at a rate proportional to the amount S present at time t, that is, dS/dt = rS, where r is the annual rate of interest. (a)Find the amount of money accrued at the end of 9 years when $4000 is deposited in a savings account drawing 5 1/4 $ % annual interest compounded continuously. (Round your answer to the nearest cent.) (b)In how many years will the initial sum...
1.Find the present value of the following ordinary annuities. Round your answer to the nearest cent....
1.Find the present value of the following ordinary annuities. Round your answer to the nearest cent. Amount per Payment Payment at End of Each Time (Years) Rate of Investment Present Value $3,300 6 months 8 12% $ 2. Find the amount of the following annuities due and interest earned. Round your answer to the nearest cent. Amount of Each Deposit Period Rate Time (Years) Amount of Annuity $7,500 quarterly 8% 8 $ 3.Find the amount of each payment needed to...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT