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
Correct Answer:
Verified
Correct Answer:
Verified
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