A company manufactures Cars. During the years following 2018 (the company's 115th anniversary year), the company's gross income can be approximated by 1.97 - 0.13t billion dollars per year, where t is time in years since January 1, 2018. Assume this rate holds through January 1, 2023, and assume a continuous interest rate of 1.5% per year. (a) a1. What was the gross income of the company in 2018 (t = 0)? In billions dollars a2. What is the projected gross income in 2022 (t = 4) in billions dollars? (b) What was the present value, on January 1, 2018, of Harley-Davidson's gross income for the four years from January 1, 2018 to January 1, 2022? Round your answer to two decimal places in billions dollars (c) What is the future value, on January 1, 2022, of the gross income for the preceding 4 years? Give answer in billions dollars
A company manufactures Cars. During the years following 2018 (the company's 115th anniversary year), the company's gross income can be approximated by 1.97 - 0.13t billion dollars per year, where t is time in years since January 1, 2018. Assume this rate holds through January 1, 2023, and assume a continuous interest rate of 1.5% per year.
(a)
a1. What was the gross income of the company in 2018 (t = 0)? In billions dollars
a2. What is the projected gross income in 2022 (t = 4) in billions dollars?
(b)
What was the
(c)
What is the
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
