Chapter 6.2, Problem 8QY

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10th Edition

Ron Larson

ISBN: 9781305860919

Textbook Problem

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A small business expects its income *c* during the next 7 years to be given by

(a) Find the actual income for the business over the 7 years.

(b) Assuming an annual inflation rate of

**(a)**

To determine

**To calculate:** The actual income for business over next 7 years, when income of business is modelled as

Explanation

**Given Information:**

The income of business is modelled as

**Formula used:**

General Power Rule of Integration,

Here,

**Calculation:**

Consider the provided expression,

Integrate the above function from lower limit as 0 and higher limit as 7 in order to find the actual income for business over next 7 years.

Use the formula for general power rule of integration to solve above integration

**(b)**

To determine

**To calculate:** The present value of income for business over next 7 years, when income of business is modelled as

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