13 Jun An Investor Is Presented With A Choice Of Two Investments: An Established
An investor is presented with a choice of two investments: an established furniture store and a new book store, Each choice requires the same initial investment and each produces a continuous income stream of 5%. compounded continuously. The rate of flow of income from the furniture store is f( t) = 16.000. and the rate of flow of income from the book store is expected to be g (t) = 14.000 e^0.04t. Compare the future values of these investments to determine which is the better choice over the next 5 years. The future value of the furniture store is (Round to the nearest dollar as needed. The future value of the book store is (Round to the nearest dollar as needed Which store is the better investment over the next 5 years?
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