By the year 2016 you will have made your first million dollars.You invest it in a new company on January 1, 2017.The new company starts to earn a profit six months later.Thus, starting July 1, 2017, you receive income from the company in a continuous stream at a constant rate of 1/2 million dollars per year. Your bank offers interest at a nominal rate of 8% per year, compounded continuously.When will you have received an income of $1 million from the company? (Do not take into account the bank's interest; this question is simply asking when the total income you have received will reach $1 million.)
A)July 1, 2019
B)January 1, 2019
C)July1, 2018
D)January1, 2018

Question

Quizplus · Accepted Answer

To receive $1 million at a rate of 1/2 million dollars per year, it will take 2 years. Starting from July 1, 2017, 2 years later is July 1, 2019.

By the Year 2016 You Will Have Made Your First