The formula to calculate continuous compound amount is as below:
A = Pert
Where,
A = Amount
P = Principal
e = mathematical constant approximated as 2.7183
r = rate of interest
t = time in years
As per the given details the future value will be calculated as below:

So, Future Value of investment = $ 29642791.90
Total Accumulated Interest = (29,642,791.90 - 7,875,000)
= $ 21,767,791.90
Problem 5. A company has an instantaneous cash flow investment stream for a certain project that...
Problem 4 Company ABC has an instantaneous investment stream, S(n), over 2 years that can be represented as a continuous first-degree polynomial function as given in the below figure for Year 1 and Year 2. Part A: If a continuously compounded interest is applied to the instantaneous cash flow investment stream, determine the future worth of the investment at the end of Year 6. Investment Stream $1,000 /year Line = S(n) Investment Stream, $/year Time, years Part B: If the...
Problem 4 Company ABC has an investment stream, S(n), over 2 years that can be represented as a continuous first degree polynomial function as given in the below figure for year 1 and year 2 (1) If a continuously compounded interest is applied to the instantaneous cash flow investment stream, determine the future worth of the investment at the end of year 6 Investment Stream $1,000 /year Investment Stream, $/year Time, years (2) If the investment stream was abruptly discontinued...
5 pts Question 18 An investment promises the following cash flow stream: $1,000 at Time 0; $2,000 at the end of Year 1 (or att = 1); $3,000 at the end of Year 2:; and $5,000 at the end of Year 3. At a discount rate of 6.5 %, what is the present value of the cash flow stream? Your answer should be between 8343.00 and 11,000.00, rounded to 2 decimal places, with no special characters Question 19 5 pts...
The following cash flow was generated for a particular project investment. The IRR of the project is very close to: End of Year End of Year Cash Flow 0 -$500 1 $140 2 $132 3 $124 4 $116 5 $108 12% annually compounding interest rate 10% annually compounding interest rate 8% annually compounding interest rate 6% annually compounding interest rate None of the above. The correct IRR is: ____________________________.
Problem 2 An investment is under consideration. If the total annual payments to the investment of $10,000/year is made uniformly over the year and for 10 years, compare the accumulated interest of the investment at the end of the 10 years if the payments are (1) made at the end of each year with discrete yearly interest compounding, (2) made at the end of each week with weekly discrete compounded interest and (3) made continuously with continuous interest compounding. The...
33.In the following cash flow stream, X is an unknown cash flow amount (thus, you have an unknown cash flow at the end of year 3 and at the end of year 4). The missing cash flow is the same for both years (that is, X in year 3 is the same dollar amount as X in year 4). If the future value at the end of year 10 of these cash flows deposited into an account that pays 5.95...
Problem 1 Part A: What is the future worth an investment, before taxes, if $10,000 is placed in a savings account for 10 years, earning a nominal interest rate of 6%year compounded monthly? Part B: How many years will be required for the original principle amount to double in value? For Part B, assume biannual interest compounding is applied with the same nominal interest rate of 6%/year. Part C: What is the shortest time in years to double the original...
Consider the following uneven cash flow stream: Year Cash Flow PV of Cash Flow 0 $2,000 1 2,500 2 0 3 1,500 4 3,000 5 4,500 a. What is the present (Year 0) value of the cash flow steam if the opportunity cost rate is 10%? b. What is the future (Year 5) value of the cash flow stream if the cash flows are invested in an account that pays 10% annually?
5-2: Future Values 5-3: Present Values Problem Walk-Through Present and future values of a cash flow stream An investment will pay $50 at the end of each of the next 3 years, $250 at the end of Year 4, $350 at the end of Year 5, and $500 at the end of Year 6. a. If other investments of equal risk earn 11% annually, what is its present value? Round your answer to the nearest cent. b. If other investments...
Present and Future Value of an Uneven Cash Flow Stream An investment will pay $200 at the end of each of the next 3 years, $400 at the end of Year 4, $500 at the end of Year 5, and $600 at the end of Year 6. If other investments of equal risk earn 9% annually, what is this investment's present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent. Present value: $ ...