An newly opened restaurant is projected to generate revenue at a rate ofR(1) = 120000dollars/year for the next 6 years. If the interest rate is 3.9%/year compounded continuously, find thefuture value of this income stream after 6 years. Enter you answer to the nearest dollar.A = $CheckA university is setting up an entrance award which will provide $3000 to a student each year, beginningnext year. If the annual effective rate of interest is 3.0% compounded continuously, what is the amountof money required to fund the endowment? (Enter your answer to the nearest dollar.)Answer: $Check

Answered: dollars/year for the next 6 years. If…

dollars/year for the next 6 years. If the interest rate is 3.9%/year compounded continuously, find the future value of this income stream after 6 years. Enter you answer to the nearest dollar.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

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Question

An newly opened restaurant is projected to generate revenue at a rate of
R(1) = 120000
dollars/year for the next 6 years. If the interest rate is 3.9%/year compounded continuously, find the
future value of this income stream after 6 years. Enter you answer to the nearest dollar.
A = $
Check
A university is setting up an entrance award which will provide $3000 to a student each year, beginning
next year. If the annual effective rate of interest is 3.0% compounded continuously, what is the amount
of money required to fund the endowment? (Enter your answer to the nearest dollar.)
Answer: $
Check

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