Future Value of an Investment The newly opened Mario's Trattoria is expected to produce a continuous income stream at the rate of R(t) = 140,000 dollars/year for the next 3 years. If the prevailing interest rate is 3.5 % /year compounded continuously, find the future value of this income stream. (Round your answer to two decimal places.) $ 435137.90 x Need Help? Read It

Future Value of an Investment The newly opened Mario's Trattoria is expected to produce a continuous income stream at the rate of R(t) = 140,000 dollars/year for the next 3 years. If the prevailing interest rate is 3.5 % /year compounded continuously, find the future value of this income stream. (Round your answer to two decimal places.) $ 435137.90 x Need Help? Read It

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Please try to solve in 20 minute Your client plans to invest $2000 at the end of each year. The rate of return on the investment is 7.5% compounded annually. What will be the value of the investment at the end of 12 years?
Problem 2. After graduation, you just got hired by an engineering company and you were planning to take a loan in order to purchase a new car. Let's assume that the bank is willing to offer you a personal loan with an annual interest rate of9.5%compounded yearly. The car price is26.500JDand you are capable to pay 4,200 JD per year. After how many years you will be able to pay back the loan with the accumulated interest (use a spreadsheet to answer this question) and draw the cash flow diagram.
QUESTION 2 1. You need $30,000 to buy a new Air-Con for your house in 4 years. What value you must have now if the compounded annually return is 10%. 2. Your father placed $50,000 in a trust fund for you. In 12 years what will be the worth of the savings. If the estimated rate of return on the trust fund is 7%?
You buy a share of stock that pays $5 in dividends for the next 5 years and nothing after that. If the interest rate is 5.5%, the present value of this series of payments is $21.35 $35.67 $3.83 $42.70
Suppose a certain manufacturer deposits $3, 000 at the beginning of each 3 month period for 8 years in an account paying 8% interest compounded quarterly. (Round your answers to the nearest cent.) (a) How much (in $) will be in the account at the end of the 8 year period? $ Incorrect: Your answer is incorrect. (b) What is the total amount (in $) of interest earned in this account? $ Incorrect: Your answer is incorrect
Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same. intervals as deposits. Round your answer to the nearest cent.) $40,000 in a fund paying 5% per year, with monthly payments for 5 years, if the fund contains $10,000 at the start PMT $566.14 Need Help? Read I Watch It
A friend of yours bought a new sports car with a $5,000 down payment plus a $26,000 car loan that is financed at an interest rate of 0.25% per month for60 months. a. Calculate the required monthly loan payment on the car. b. How much does your friend still owe on the car loan immediately after she makes the 24th monthly payment? c. If, after the 24th payment, she decides to pay $300 more each month, how many months will it take her to payoff the remaining loan she owes? a) The required monthly Payment is $ (round to nearest cent) b. Your friend still owes on the car loan. (Round to the nearest dollar.) c. It will take her months. (Round-up to the nearest month)
You would like to have $800,000 in your retirement account in 40 years. You assume your retirement account will get a 6% rate of return, compounded monthly. How much money will you need to put in the account each month?
Pls help with below homework. Suppose you take out a $20,000 fixed payment loan to purchase a car. The loan is to be repaid in monthly installments over a term of 6 years. If your loan is obtained at an annual nominal interest rate of 12%, and interest is compounded monthly, how much will your monthly payments be?
1. If you borrow money from your friend with simple interest of 12%. Find the present worth of 20,000 which is due at the end of nine months? 2. A Loan of 10,000 is made for a period of (m) months at simple interest of 20%. If the future amount is due at the end of the load period is 4,166. Determine the (m) ? 3. The investmest made by John proved most remunerative. His 1,000,000 savings doubled at 2% per 6 months after (n) years. Determine the (n) ? 4. An investors holds a time payment purchase contact on some machine tools. The contact calls for the payments of 6,800 at the end of each month a 5 years period. The 1st payment is due in one month. He offers to sell you the contact for 330,680 cash today. If you otherwise can make 1% per month on your money, would you accept or reject the investors office?
f you have only $750 on January 1, 2019, what interest rate, compounded annually for3 years, must you earn to have $1,000 on January 1, 2022?
allie has won a lottery that pays her $135,000 at the end of this year and increases by 11.25% per year thereafter for 26 years. leon has offered allie $ 2,500,000 today in exchange for all the money she will receive. if gail can get 13% per year compounded every 6 months. a. determine the present worth of the lottery winnings. b. does leon offer a good deal? (yes/no) c. what is the future worth of the better deal?