KPV =  f(t)e^-rt dt0 A 58-year-old couple is considering opening a business oftheir own

Subject:MathPrice:3.87 Bought7

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KPV =  f(t)e^-rt dt0

A 58-year-old couple is considering opening a business oftheir own. They will either purchase an established Gift andCard Shoppe or open a new Video Rental Palace. The Gift Shoppehas a continuous income stream with an annual rate of flow at timet given by G(t) = 30,000 (dollars per year) and theVideo Palace has a continuous income stream with a projected annualrate of flow at time t given by V(t) = 21,600e^0.08t (dollars peryear). The initial investment is the same for both businesses,and money is worth 10% compounded continuously. Find thepresent value of each business over the next 7 years (until thecouple reach age 65) to see which is the better buy.