ou have an opportunity to buy a business that will earn $10,000 per year continuously over the next 9 years. If you could earn 7% interest compounded continuously, how much would this business be worth now based on the next 9 years of income? That is, which of the following integrals represents the Present Value of the continuous income stream?

Algebra and Trigonometry (MindTap Course List)
4th Edition
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter4: Exponential And Logarithmic Functions
Section4.2: The Natural Exponential Function
Problem 2E
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You have an opportunity to buy a business that will earn $10,000 per year continuously over the next 9 years. If you could earn 7% interest compounded continuously, how much would this business be worth now based on the next 9 years of income?

That is, which of the following integrals represents the Present Value of the continuous income stream?

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