Calculation: Consider the provided function c (t) = $3000, interest rate r = 6% and term T = 5 yr. To calculate the annuity, use annuity formula as shown below: I c(t) e *dt Amount of annuity = e"" Substitute the value of c (t) = $3000, r = 6%, T = 5yr in above formula, c (t) e " dt = e0.06(5) 3000e 0.06t t 0.06t dt = 3000e0.3 Use Fundamental theorem of calculus: 0.06 dt c (t) e *dt = 3000e0.3 = -50000e0.3 (e 0.062)15 = 17492.94 Hence, the annuity amount with provided income function c (t) = $3000, interest rate r = 6% and term T = 5 yr is $17, 492.94.

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Confidence Intervals

When we calculate intervals in probability and statistics, it can be simply termed as finding out a confidence interval. The confidence interval is usually calculated from the data set which is observed. The value of the parameter that needs to be calculated is present here only.