A graphing calculator recommended. The capital value of an asset is defined as the present value of all future earnings. For an asset that may last indefinitely (such as real estate or a corporation), the capital value is - [* Ca(t)e-πt dt Capital value where C(t) is the income per year and r is the continuous interest rate. Find the capital value of a piece of property that will generate an annual income of C(t), for the function C(t) given below, at a continuous interest rate of 6%. (Round your answer to the nearest thousand dollars.) C(t) = 70√t thousand dollars thousand dollars

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
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A graphing calculator is recommended.
The capital value of an asset is defined as the present value of all future earnings. For an asset that may last indefinitely (such as real estate or a corporation), the capital value is
:') = (² c
Capital
value
C(t)e-rt dt
where C(t) is the income per year and r is the continuous interest rate. Find the capital value of a piece of property that will generate an annual income of C(t), for the function C(t) given below, at a continuous interest
rate of 6%. (Round your answer to the nearest thousand dollars.)
C(t) = 70√t thousand dollars
thousand dollars
Transcribed Image Text:A graphing calculator is recommended. The capital value of an asset is defined as the present value of all future earnings. For an asset that may last indefinitely (such as real estate or a corporation), the capital value is :') = (² c Capital value C(t)e-rt dt where C(t) is the income per year and r is the continuous interest rate. Find the capital value of a piece of property that will generate an annual income of C(t), for the function C(t) given below, at a continuous interest rate of 6%. (Round your answer to the nearest thousand dollars.) C(t) = 70√t thousand dollars thousand dollars
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