Suppose that a business provides a continuous income stream with an annual rate of flow at time t given by f(t) = 120e0.05t in thousands of dollars per year. If the interest rate is 10% compounded continuously, find the capital value of the business.
Suppose that a business provides a continuous income stream with an annual rate of flow at time t given by f(t) = 120e0.05t in thousands of dollars per year. If the interest rate is 10% compounded continuously, find the capital value of the business.
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 business provides a continuous income stream with an annual rate of flow at time t given by
f(t) = 120e0.05t
in thousands of dollars per year. If the interest rate is 10% compounded continuously, find the capital value of the business.
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