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An investment is expected to produce a uniform continuous rate of money flow of $500 per year

Question : An investment is expected to produce a uniform continuous rate of money flow of $500 per year : 2151797

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

The function represents the rate of flow of money in dollars per year. Assume a 10-year period and find the present value.

1) f(x) = 500 at 2% compounded continuously

A) $45,468.27

B) $4531.73

C) $5535.07

D) $20,468.27

2) f(x) = 2000 at 6% compounded continuously

A) $51,627.05

B) $18,293.72

C) $15,039.61

D) $27,403.96

3) f(x) = 500e0.04x at 5% compounded continuously

A) $4758.13

B) $5258.55

C) $55,258.55

D) $95,241.87

4) f(x) = 1000e-0.04x at 2% compounded continuously

A) $25,813.53

B) $7519.81

C) $30,368.65

D) $13,701.98

5) f(x) = 0.5x at 3% compounded continuously

A) $267.46

B) $20.52

C) $1090.59

D) $41.04

6) f(x) = 0.04x + 300 at 5% compounded continuously

A) $1817.12

B) $2362.26

C) $9669.74

D) $1968.55

7) f(x) = 2100x - 110x2 at 3% compounded continuously

A) $115,513.93

B) $11,686,485.2

C) $6,093,152.14

D) $56,855.53

The function represents the rate of flow of money in dollars per year. Assume a 10-year period and find the accumulated amount of money flow at t = 10.

8) f(x) = 500 at 8% compounded continuously

A) $20,159.63

B) $17,046.82

C) $7659.63

D) $6250.00

9) f(x) = 2000 at 6% compounded continuously

A) $33,333.33

B) $94,070.63

C) $27,403.96

D) $49,933.27

10) f(x) = 500e0.04x at 8% compounded continuously

A) $13,682.20

B) $46,467.07

C) $41,501.46

D) $9171.45

11) f(x) = 1000e-0.04x at 8% compounded continuously

A) $43,029.29

B) $12,960.17

C) $24,132.17

D) $61,575.47

12) f(x) = 0.5x at 7% compounded continuously

A) $32.02

B) $378.95

C) $174.87

D) $64.04

13) f(x) = 0.03x + 500 at 5% compounded continuously

A) $26,525.00

B) $5899.09

C) $6489.00

D) $5407.50

Solve the problem.

14) An investment is expected to produce a uniform continuous rate of money flow of $500 per year for 10 years. Find the present value at 6% compounded continuously.

A) $12,906.76

B) $6850.99

C) $4573.43

D) $3759.90

15) The rate of a continuous money flow starts at $500 and increases exponentially at 4% per year for 10 years. Find the present value if interest is earned at 5% compounded continuously.

A) $95,241.87

B) $55,258.55

C) $4758.13

D) $5258.55

16) The rate of a continuous money flow starts at $1000 and decreases exponentially at 4% per year for 10 years. Find the present value if interest is earned at 4% compounded continuously.

A) $15,319.26

B) $18,116.61

C) $27,819.26

D) $6883.39

17) A money market fund has a continuous flow of money at a rate of f(x) = 0.04x + 300 for 10 years. Find the present value of this flow if interest is earned at 6% compounded continuously.

A) $7764.93

B) $1736.38

C) $1881.08

D) $2257.30

18) A money market fund has a continuous flow of money at a rate of f(x) = 2800x - 180x2 for 10 years. Find the present value of this flow if interest is earned at 7% compounded continuously.

A) $53,197.69

B) $1,009,465.91

C) $124,865.15

D) $574,395.09

19) A real estate investment is expected to produce a uniform continuous rate of money flow of $2000 per year for 10 years. Find the final amount at an interest rate of 10% compounded continuously.

A) $20,000.00

B) $34,365.64

C) $74,365.64

D) $93,415.49

20) The rate of a continuous money flow starts at $500 and increases exponentially at 4% per year for 10 years. Find the final amount if interest is earned at 8% compounded continuously.

A) $9171.45

B) $46,467.07

C) $41,501.46

D) $13,682.20

21) The rate of a continuous money flow starts at $1000 and decreases exponentially at 4% per year for 10 years. Find the final amount if interest is earned at 7% compounded continuously.

A) $36,689.95

B) $54,996.80

C) $12,213.02

D) $24,400.66

22) A money market fund has a continuous flow of money at a rate of f(x) = 0.5x for 10 years. Find the final amount if interest is earned at 2% compounded continuously.

A) $26.75

B) $526.75

C) $53.50

D) $3026.75

23) A money market fund has a continuous flow of money at a rate of f(x) = 1900x - 120x2 for 10 years. Find the final amount if interest is earned at 6% compounded continuously.

A) $55,000.00

B) $70,430.70

C) $38,653.19

D) $21,213.32

Solution
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