Suppose that a vending machine company is considering selling some of its machines. Suppose further that the income from these particular machines is a continuous stream with an annual rate of flow at time t given by
Find the present value and future value of the machines over the next 3 years if the money is worth 11% compounded continuously. Round answers to the nearest dollar.
?
A. PV = $1,893FV = $2,633
B. ?PV = $1,893FV = $2,349
C. PV = $1,689FV = $2,349
D. PV = $1,689FV = $2,633
E. PV = $2,364FV = $2,633
Answer: C
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