The capital value of an asset is sometimes defined as the present value of all future net earnings. The capital value of the asset may be written in the form [capital value] = K(t)e "dt, where r is the annual rate of interest, compounded continuously. Find the capital value of an asset that generates income at the rate of $6000 per year, assuming an iterest rate of 12%. The capital value of the asset is $ (Type an integer or a decimal.)

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
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The capital value of an asset is sometimes defined as the present value of all future net earnings. The capital value of the asset may be written in the form [capital value] = | K(t)e"dt, where r is the annual rate of interest, compounded continuously. Find the capital value of an asset
that generates income at the rate of
$6000 per year, assuming an interest rate of 12%.
The capital value of the asset is $
(Type an integer or a decimal.)
Transcribed Image Text:- rt The capital value of an asset is sometimes defined as the present value of all future net earnings. The capital value of the asset may be written in the form [capital value] = | K(t)e"dt, where r is the annual rate of interest, compounded continuously. Find the capital value of an asset that generates income at the rate of $6000 per year, assuming an interest rate of 12%. The capital value of the asset is $ (Type an integer or a decimal.)
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