Suppose that a large farm with a known reservoir of gas beneath the ground sells the gas rights to a company for a guaranteed payment at a rate of 900e0.03t dollars per year. Find the present value of this perpetual stream of income, assuming an interest rate of 8% compounded continuously. The present value is $ ?
Suppose that a large farm with a known reservoir of gas beneath the ground sells the gas rights to a company for a guaranteed payment at a rate of 900e0.03t dollars per year. Find the present value of this perpetual stream of income, assuming an interest rate of 8% compounded continuously. The present value is $ ?
Chapter6: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 8RE: Suppose an investment account is opened with aninitial deposit of 10,500 earning 6.25...
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Suppose that a large farm with a known reservoir of gas beneath the ground sells the gas rights to a company for a guaranteed payment at a rate of 900e0.03t dollars per year. Find the present value of this perpetual stream of income, assuming an interest rate of 8% compounded continuously.
The present value is $ ?
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