Chapter 6.1, Problem 6CP

### Calculus: An Applied Approach (Min...

10th Edition
Ron Larson
ISBN: 9781305860919

Chapter
Section

### Calculus: An Applied Approach (Min...

10th Edition
Ron Larson
ISBN: 9781305860919
Textbook Problem
1 views

# Checkpoint 6Use Example 6 to find the probability that a participant will recall between 0% and 62.5% of the material.

To determine

To calculate: The present value of the income when a lottery will be paying an annuity of $50000 a year for 20 years when the annual rate of inflation is 7%. Explanation Given Information: The annual rate of inflation is 7%. The annuity paid for 20 years is$50000 a year.

Formula used:

If c represents a continuous income function in dollars per year and the annual rate of inflation is r (in decimal form), then the actual total income over t1 years is given by

Actual income over t1years =0t1c(t)dt

and its present value is given by

Present value=0t1c(t)ertdt

Calculation:

Consider the provided information that the annual rate of inflation is 7%, i.e. r=0.07

The annuity paid is \$50000 for 20 years.

So, c(t)=50000

Thus, actual income using, Actual income over t1years =0t1c(t)dt is given by

02050000dt=50000020</

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