Revenues from a manufacturing operation flow continuously into a firm's treasury at a rate of Ax) dollars per year, where Ax) == 10000 + 4000x. a) Find the total money flow at the end of 5 years; b) If the money flow, over the time interval 0

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter10: Sequences, Series, And Probability
Section10.2: Arithmetic Sequences
Problem 67E
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Revenues from a manufacturing operation flow continuously into a firm's treasury at a rate
of fx) dollars per year, where Ax) == 10000 + 4000x.
a) Find the total money flow at the end of 5 years;
b) If the money flow, over the time interval 0<x< 5, is compounded continuously
at 10%, find its present and future value.
c) Find the present value of a perpetual net income stream that is generated at the
rate of Ax) = 10000 + 4000x, if this money flow is computed continuously at an
annual interest rate of 10%.
Transcribed Image Text:Revenues from a manufacturing operation flow continuously into a firm's treasury at a rate of fx) dollars per year, where Ax) == 10000 + 4000x. a) Find the total money flow at the end of 5 years; b) If the money flow, over the time interval 0<x< 5, is compounded continuously at 10%, find its present and future value. c) Find the present value of a perpetual net income stream that is generated at the rate of Ax) = 10000 + 4000x, if this money flow is computed continuously at an annual interest rate of 10%.
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