Your company needs $500,000 in two years time for renovations and can earn 9% interest on investments.

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Your company needs $500,000 in two years’ time for renovations and can earn 9% interest on investments.
(a) What is the present value of the renovations?
(b) If your company deposits money continuously at a constant rate throughout the two-year period, at what rate should the money be deposited so that you have the $500,000 when you need it?

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Applied Calculus

ISBN: 9781119275565

6th Edition

Authors: Deborah Hughes Hallett, Patti Frazer Lock, Andrew M. Gleason, Daniel E. Flath, Sheldon P. Gordon, David O. Lomen, David Lovelock, William G. McCallum, Brad G. Osgood, Andrew Pasquale

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Question Posted: Apr 12, 2023 04:07 AM

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Your company needs $500,000 in two years time for renovations and can earn 9% interest on investments.

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a If P is the present value then the value in two years at 9 int...View the full answer

Applied Calculus

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