A 58-year-old couple is considering opening a business of their own. They will either purchase an established Gift and Card Shoppe or open a new Wine Boutique. The Gift Shoppe has a continuous income stream with an annual rate of flow at time t given by G(t) = 29,600 (dollars per year). The Wine Boutique has a continuous income stream with a projected annual rate of flow at time t given by W(t) = 20,900e0.08t (dollars per year). The initial investment is the same for both businesses, and money is worth 10% compounded continuously. Find the present value of each business over the next 7 years (until the couple reaches age 65) to see which is the better buy. (Round your answers to the nearest dollar.) Gift Shoppe $ Wine Boutique $
A 58-year-old couple is considering opening a business of their own. They will either purchase an established Gift and Card Shoppe or open a new Wine Boutique. The Gift Shoppe has a continuous income stream with an annual rate of flow at time t given by G(t) = 29,600 (dollars per year). The Wine Boutique has a continuous income stream with a projected annual rate of flow at time t given by W(t) = 20,900e0.08t (dollars per year). The initial investment is the same for both businesses, and money is worth 10% compounded continuously. Find the present value of each business over the next 7 years (until the couple reaches age 65) to see which is the better buy. (Round your answers to the nearest dollar.) Gift Shoppe $ Wine Boutique $
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section: Chapter Questions
Problem 18T
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A 58-year-old couple is considering opening a business of their own. They will either purchase an established Gift and Card Shoppe or open a new Wine Boutique. The Gift Shoppe has a continuous income stream with an annual rate of flow at time t given by
G(t) = 29,600 (dollars per year).
The Wine Boutique has a continuous income stream with a projected annual rate of flow at time t given by
W(t) = 20,900e0.08t (dollars per year).
The initial investment is the same for both businesses, and money is worth 10% compounded continuously. Find the present value of each business over the next 7 years (until the couple reaches age 65) to see which is the better buy. (Round your answers to the nearest dollar.)
Gift Shoppe | $ | |
Wine Boutique | $ |
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