Suppose that a company needs new equipment, and that the machinery in question costs $100000 and earns profit at a continuous rate of $60000 per year. Use an interest rate of 7.5% per year, compounded continuously. When is the present value of the profit equal to the cost of the machinery? Round your answer to the nearest tenth of a year.

Suppose that a company needs new equipment, and that the machinery in question costs $100000 and earns profit at a continuous rate of $60000 per year. Use an interest rate of 7.5% per year, compounded continuously. When is the present value of the profit equal to the cost of the machinery? Round your answer to the nearest tenth of a year.

Name: Hi, can someone please explain how to solve this? Suppose that a compa
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Description: Hi, can someone please explain how to solve this? Suppose that a company needs new equipment, and that the machinery in question costs $100000 andearns profit at a continuous rate of $60000 per year. Use an interest rate of 7.5% per year, compoundedc

Intermediate Algebra

10th Edition

ISBN:9781285195728

Author:Jerome E. Kaufmann, Karen L. Schwitters

Publisher:Jerome E. Kaufmann, Karen L. Schwitters

Chapter11: Exponential And Logarithmic Functions

Section11.2: Applications Of Exponential Functions

Problem 27PS

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