An oil company discovered an oil reserve of 110 million barrels. For time t> 0, in years, the company's extraction plan is a linear declining function of time as follows: q(t) = a – bt, where q(t) is the rate of extraction of oil in millions of barrels per year at time t and b = 0.05 and a = 10. (a) How long does it take to exhaust the entire reserve? time = years (b) The oil price is a constant 30 dollars per barrel, the extraction cost per barrel is a constant 16 dollars, and the market interest rate is 9 percent per year, compounded continuously What is the present value of the company's profit? value = millions of dollars
An oil company discovered an oil reserve of 110 million barrels. For time t> 0, in years, the company's extraction plan is a linear declining function of time as follows: q(t) = a – bt, where q(t) is the rate of extraction of oil in millions of barrels per year at time t and b = 0.05 and a = 10. (a) How long does it take to exhaust the entire reserve? time = years (b) The oil price is a constant 30 dollars per barrel, the extraction cost per barrel is a constant 16 dollars, and the market interest rate is 9 percent per year, compounded continuously What is the present value of the company's profit? value = millions of dollars
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section: Chapter Questions
Problem 18T
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning