An heiress receives an income stream from a will at a rate of f(t) = 20,000e0.027t dollars per year. She invests this income and earns 4.6% interest (compounded continuously). (Round your answers to two decimal places.) (a) What is the future value of the income after ten years? $ (b) Compute the present value of the income over a ten year period.

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter2: Exponential, Logarithmic, And Trigonometric Functions
Section2.1: Exponential Functions
Problem 56E
icon
Related questions
Question

6.2 Q8) Hey, I need help with the following question, thank you!

An heiress receives an income stream from a will at a rate of
f(t) = 20,000e0.027t dollars per year.
She invests this income and earns 4.6% interest (compounded continuously). (Round your answers to two decimal places.)
(a) What is the future value of the income after ten years?
$
(b) Compute the present value of the income over a ten year period.
$
Transcribed Image Text:An heiress receives an income stream from a will at a rate of f(t) = 20,000e0.027t dollars per year. She invests this income and earns 4.6% interest (compounded continuously). (Round your answers to two decimal places.) (a) What is the future value of the income after ten years? $ (b) Compute the present value of the income over a ten year period. $
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Recommended textbooks for you
Calculus For The Life Sciences
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
College Algebra
College Algebra
Algebra
ISBN:
9781938168383
Author:
Jay Abramson
Publisher:
OpenStax
College Algebra (MindTap Course List)
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897…
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Algebra and Trigonometry (MindTap Course List)
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning