A piece of art currently worth $750 is appreciating in value 'V' according to the formula: V = 750e2t 0.5 However, assuming continuous discounting, the present value of V is given by: P=Ve-rt How long should the piece of art be kept to maximise its present value under continuous compounding with r= 0.04? O 2500 years O 25 years O 625 years O 156.25 years None of the above O No answer

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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A piece of art currently worth $750 is appreciating in value 'V' according to the formula:
0.5
V = 750e2t0
However, assuming continuous discounting, the present value of Vis given by:
P =Ve-rt
How long should the piece of art be kept to maximise its present value under continuous compounding with r= 0.04?
2500 years
25 years
625 years
156.25 years
None of the above
No answer
Transcribed Image Text:A piece of art currently worth $750 is appreciating in value 'V' according to the formula: 0.5 V = 750e2t0 However, assuming continuous discounting, the present value of Vis given by: P =Ve-rt How long should the piece of art be kept to maximise its present value under continuous compounding with r= 0.04? 2500 years 25 years 625 years 156.25 years None of the above No answer
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