A 58-Year-Old Couple Are Considering Opening a Business of Their

question 144

Multiple Choice

A 58-year-old couple are considering opening a business of their own. They will either purchase an established Gift and Card Shoppe or open a new Video Rental Palace. The Gift Shoppe has a continuous income stream with an annual rate of flow at time t given by (dollars per year) and the Video Palace has a continuous income stream with a projected annual rate of flow at time t given by (dollars per year) . The initial investment is the same for both businesses, and money is worth 10% compounded continuously. Find the present value of the Video Palace over the next 8 years (until the couple reach age 66) . Round your answer to the nearest dollar. ​

• A)$222,961
• B)$220,268
• C)$202,618
• D)$237,342
• E)$181,863

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Definitions:

Laryngopharynx

The lower part of the pharynx, located near the larynx, that facilitates the passage of air to the lungs and food to the esophagus.

Digestive Enzymes

Proteins secreted by the digestive system that break down food into nutrients that can be absorbed by the body.

Common Bile Duct

A tube that carries bile from the liver and gallbladder into the duodenum, the first part of the small intestine.

Gallbladder

A small organ located beneath the liver that stores and concentrates bile, aiding in the digestion of fats.