McDonalds estimates it will have a continuous income flow of f(t)= 2510 dollars per year from marketing campaigns. a) if the interest rate is 10.35% compounded continuously, what is the present value of 4 years of this income? b) If the interest rate is 10.35% compounded continuously, what is the future value of the income stream in 6 years? Please make the answer clear!

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter6: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 8RE: Suppose an investment account is opened with aninitial deposit of 10,500 earning 6.25...
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McDonalds estimates it will have a continuous
income flow of f(t)= 2510 dollars per year from
marketing campaigns. a) if the interest rate is
10.35% compounded continuously, what is the
present value of 4 years of this income? b) If
the interest rate is 10.35% compounded
continuously, what is the future value of the
income stream in 6 years?
Please make the answer clear!
Transcribed Image Text:McDonalds estimates it will have a continuous income flow of f(t)= 2510 dollars per year from marketing campaigns. a) if the interest rate is 10.35% compounded continuously, what is the present value of 4 years of this income? b) If the interest rate is 10.35% compounded continuously, what is the future value of the income stream in 6 years? Please make the answer clear!
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