1
answer
0
watching
410
views
13 Nov 2019
Tutorial Exercise Suppose that a printing firm considers its production as a continuous income stream. If the annual rate of flow at time t is given by ft) = 92.9e-0.9(t + 3) in thousands of dollars per year, and if money is worth 7% compounded continuously, find the present value and future value of the presses over the next 10 years. Step 1 To find the present value of a continuous income stream, we use the formula fc Present Value = / f(t)e-rt dt where t = 0 to t k is the time interval, and rt) is the rate of continuous income flow earning interest at rate 10 92.9e-0.9(t + 3)e-Ev' | >0.07 )t) dt Present Value = 0 Step 2 Write the integrand as a single exponential function. 10 Present Value 92.9 dt
Tutorial Exercise Suppose that a printing firm considers its production as a continuous income stream. If the annual rate of flow at time t is given by ft) = 92.9e-0.9(t + 3) in thousands of dollars per year, and if money is worth 7% compounded continuously, find the present value and future value of the presses over the next 10 years. Step 1 To find the present value of a continuous income stream, we use the formula fc Present Value = / f(t)e-rt dt where t = 0 to t k is the time interval, and rt) is the rate of continuous income flow earning interest at rate 10 92.9e-0.9(t + 3)e-Ev' | >0.07 )t) dt Present Value = 0 Step 2 Write the integrand as a single exponential function. 10 Present Value 92.9 dt
Trinidad TremblayLv2
9 Apr 2019