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13 Nov 2019
Step 1 To find the present value of a continuous income stream, we use the formula Present Value =k rte-rdt where t = 0 to t = k is the time interval, and rt) is the rate of continuous income flow earning interest at rate Use the Present Value formula and the given information to set up the integral. 10 10 92.9e-0.9(t + 3)e-Ev' | >0.07 0.07dt Present Value 0 Step 2 Write the integrand as a single exponential function. 10 Present Value = 92.9 -0.83t-0.27 Step 3 Now integrate and simplify. Give your answer to the nearest dollar, remembering that f(t) is the rate of flow in thousands of dollars. 10 92.9 Present Value =-097 e-0.97t - 2.7
Step 1 To find the present value of a continuous income stream, we use the formula Present Value =k rte-rdt where t = 0 to t = k is the time interval, and rt) is the rate of continuous income flow earning interest at rate Use the Present Value formula and the given information to set up the integral. 10 10 92.9e-0.9(t + 3)e-Ev' | >0.07 0.07dt Present Value 0 Step 2 Write the integrand as a single exponential function. 10 Present Value = 92.9 -0.83t-0.27 Step 3 Now integrate and simplify. Give your answer to the nearest dollar, remembering that f(t) is the rate of flow in thousands of dollars. 10 92.9 Present Value =-097 e-0.97t - 2.7
Lelia LubowitzLv2
17 Sep 2019