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An investment is expected to produce a uniform continuous rate of money flow of \$500 per year
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# 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 5 (1 Ratings )

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