Suppose that a company needs new equipment, and that the machinery in question earns the company revenue at a continuous rate of 56000t + 40000 dollars per year during the first six months of operation, and at the continuous rate of $68000 per year after the first six months. The cost of the machine is $175000. The interest rate is 8.5% per year, compounded continuously. a) Find the present value of the revenue earned by the machine during the first year of operation. Round your answer to the nearest cent. Value: $ b) Determine how long it will take for the machine to pay for itself; that is, how long until the present value of the revenue is equal to the cost of the machine. Round your answer to the nearest hundredth. Years:

Suppose that a company needs new equipment, and that the machinery in question earns the company revenue at a continuous rate of 56000t + 40000 dollars per year during the first six months of operation, and at the continuous rate of $68000 per year after the first six months. The cost of the machine is $175000. The interest rate is 8.5% per year, compounded continuously. a) Find the present value of the revenue earned by the machine during the first year of operation. Round your answer to the nearest cent. Value: $ b) Determine how long it will take for the machine to pay for itself; that is, how long until the present value of the revenue is equal to the cost of the machine. Round your answer to the nearest hundredth. Years:

College Algebra

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter6: Exponential And Logarithmic Functions

Section6.1: Exponential Functions

Problem 68SE: An investment account with an annual interest rateof 7 was opened with an initial deposit of 4,000...

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