Find the sum M=p+q+r. The definite integral can be used to find the total income over a fixed number of years from a continuous income stream. The definite integral can also be used to find the present value - the value today of a continuous income stream that will be providing income in the future. The present value is useful in deciding when to replace machinery or what new equipment to select. When the notion of the present value is extended to an infinite time interval, the result is called the capital value of the income stream and is given by Capital Value = f f(x) · e-rt dt Suppose that an organization wants to establish a trust fund that will provide a continuous income stream with an annual rate of flow at time t given by f(t) = 10 000. If the interest rate r=0.01-M per year, compounded continuously, find the capital value of the fund when they plan to operate a) 3 years, b) forever. %3D
Find the sum M=p+q+r. The definite integral can be used to find the total income over a fixed number of years from a continuous income stream. The definite integral can also be used to find the present value - the value today of a continuous income stream that will be providing income in the future. The present value is useful in deciding when to replace machinery or what new equipment to select. When the notion of the present value is extended to an infinite time interval, the result is called the capital value of the income stream and is given by Capital Value = f f(x) · e-rt dt Suppose that an organization wants to establish a trust fund that will provide a continuous income stream with an annual rate of flow at time t given by f(t) = 10 000. If the interest rate r=0.01-M per year, compounded continuously, find the capital value of the fund when they plan to operate a) 3 years, b) forever. %3D
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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p=4
q=3
r=1
s=3
t=5
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