Explanation Given Information: The Max was to be awarded the present value of the income $ 30 , 000 per year over 30 years at 6 % interest rate and increasing income $ 1 , 500 per year after injury. Formula used: The Present Value of a Continuous Income Stream: If the rate of receipt of income from time t = a to t = b is R ( t ) dollars per unit of time and the rate of interest is r per unit time on the deposited income, compounded continuously, then at time t = a amount of money would be: P V = ∫ a b R ( t ) e r ( a − t ) d t Calculation: Income receivable per year is: 30 , 000 per year Increasing income $ 1 , 500 per year. So, the total income receivable per year is: 30 , 000 + 1 , 500 t Where, t is the time per year. Consider the interest equation: R ( t ) = 30 , 000 + 1 , 500 t Since, to get Present value of the interest in 30 years the interval is: 0 ≤ t ≤ 30 Breaking the given interval 0 ≤ t ≤ 30 to get: [ 0 , 30 ] Where, a = 0 b = 30 Rate of interest is given by 6 % , simplifying it to get: r = 6 100 r = 0.06 Considering the formula: F V = ∫ a b R ( t ) e r ( a − t ) d t Substituting 0 for a , 30 for b , 0.06 for r and 30 , 000 + 1 , 500 t for R ( t ) to get: F V = ∫ 0 30 ( 30 , 000 + 1 , 500 t ) e 0

Finite Mathematics and Application Calculus (Looseleaf) - Text Only

7th Edition

ISBN: 9781337291484

Author: Waner

Publisher: Cengage

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Chapter 14.4, Problem 54E

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To calculate: The Present value of the award where, Max was to be awarded the present value of the income $30,000 per year over 30 years at 6% interest rate and increasing income $1,500 per year after injury.

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Chapter 14.4, Problem 53E

Chapter 14.4, Problem 55E

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Chapter 14 Solutions

Finite Mathematics and Application Calculus (Looseleaf) - Text Only

Ch. 14.1 - In Exercises 140, evaluate the integral using...Ch. 14.1 - Prob. 2E Ch. 14.1 - Prob. 3E Ch. 14.1 - Prob. 4E Ch. 14.1 - Prob. 5E Ch. 14.1 - Prob. 6E Ch. 14.1 - Prob. 7E Ch. 14.1 - Prob. 8E Ch. 14.1 - Prob. 9E Ch. 14.1 - Prob. 10E

Ch. 14.1 - Prob. 11E Ch. 14.1 - In Exercises 140, evaluate the integral using...Ch. 14.1 - Prob. 13E Ch. 14.1 - Prob. 14E Ch. 14.1 - Prob. 15E Ch. 14.1 - Prob. 16E Ch. 14.1 - Prob. 17E Ch. 14.1 - Prob. 18E Ch. 14.1 - Prob. 19E Ch. 14.1 - Prob. 20E Ch. 14.1 - Prob. 21E Ch. 14.1 - Prob. 22E Ch. 14.1 - Prob. 23E Ch. 14.1 - Prob. 24E Ch. 14.1 - In Exercises 140, evaluate the integral using...Ch. 14.1 - Prob. 26E Ch. 14.1 - Prob. 27E Ch. 14.1 - Prob. 28E Ch. 14.1 - Prob. 29E Ch. 14.1 - Prob. 30E Ch. 14.1 - Prob. 31E Ch. 14.1 - Prob. 32E Ch. 14.1 - Prob. 33E Ch. 14.1 - Prob. 34E Ch. 14.1 - Prob. 35E Ch. 14.1 - Prob. 36E Ch. 14.1 - In Exercises 140, evaluate the integral using...Ch. 14.1 - In Exercises 140, evaluate the integral using...Ch. 14.1 - In Exercises 140, evaluate the integral using...Ch. 14.1 - Prob. 40E Ch. 14.1 - Prob. 41E Ch. 14.1 - Prob. 42E Ch. 14.1 - Prob. 43E Ch. 14.1 - Prob. 44E Ch. 14.1 - Prob. 45E Ch. 14.1 - Prob. 46E Ch. 14.1 - Prob. 47E Ch. 14.1 - Prob. 48E Ch. 14.1 - Prob. 49E Ch. 14.1 - Prob. 50E Ch. 14.1 - Prob. 51E Ch. 14.1 - Prob. 52E Ch. 14.1 - Prob. 53E Ch. 14.1 - Prob. 54E Ch. 14.1 - Prob. 55E Ch. 14.1 - Prob. 56E Ch. 14.1 - Spending on Gasoline From the beginning of 2000 to...Ch. 14.1 - Spending on Gasoline From the beginning of 2007 to...Ch. 14.1 - Housing The following graph shows the annual...Ch. 14.1 - Housing for Sale The following graph shows the...Ch. 14.1 - Prob. 61E Ch. 14.1 - Bottled Water Sales The rate of U.S. sales of...Ch. 14.1 - Oil Production in Mexico The rate of crude oil...Ch. 14.1 - Oil Imports from Mexico The rate of crude oil...Ch. 14.1 - Prob. 65E Ch. 14.1 - Prob. 66E Ch. 14.1 - Prob. 67E Ch. 14.1 - Integrals of Piecewise-Linear Functions Exercises...Ch. 14.1 - Prob. 69E Ch. 14.1 - Prob. 70E Ch. 14.1 - Prob. 71E Ch. 14.1 - Prob. 72E Ch. 14.1 - Prob. 73E Ch. 14.1 - Prob. 74E Ch. 14.1 - In Exercises 7380, indicate whether the given...Ch. 14.1 - Prob. 76E Ch. 14.1 - Prob. 77E Ch. 14.1 - Prob. 78E Ch. 14.1 - Prob. 79E Ch. 14.1 - Prob. 80E Ch. 14.1 - Prob. 81E Ch. 14.1 - Prob. 82E Ch. 14.1 - Prob. 83E Ch. 14.1 - Prob. 84E Ch. 14.2 - In Exercises 18, find the area of the shaded...Ch. 14.2 - Prob. 2E Ch. 14.2 - Prob. 3E Ch. 14.2 - Prob. 4E Ch. 14.2 - Prob. 5E Ch. 14.2 - Prob. 6E Ch. 14.2 - Prob. 7E Ch. 14.2 - Prob. 8E Ch. 14.2 - Prob. 9E Ch. 14.2 - Prob. 10E Ch. 14.2 - Prob. 11E Ch. 14.2 - Prob. 12E Ch. 14.2 - Prob. 13E Ch. 14.2 - Prob. 14E Ch. 14.2 - Prob. 15E Ch. 14.2 - Prob. 16E Ch. 14.2 - Prob. 17E Ch. 14.2 - Prob. 18E Ch. 14.2 - Prob. 19E Ch. 14.2 - Prob. 20E Ch. 14.2 - Prob. 21E Ch. 14.2 - Prob. 22E Ch. 14.2 - Prob. 23E Ch. 14.2 - Prob. 24E Ch. 14.2 - Prob. 25E Ch. 14.2 - In Exercises 942, find the area of the indicated...Ch. 14.2 - Prob. 27E Ch. 14.2 - Prob. 28E Ch. 14.2 - Prob. 29E Ch. 14.2 - Prob. 30E Ch. 14.2 - Prob. 31E Ch. 14.2 - Prob. 32E Ch. 14.2 - Prob. 33E Ch. 14.2 - Prob. 34E Ch. 14.2 - Prob. 35E Ch. 14.2 - Prob. 36E Ch. 14.2 - Prob. 37E Ch. 14.2 - Prob. 38E Ch. 14.2 - Prob. 39E Ch. 14.2 - Prob. 40E Ch. 14.2 - Prob. 41E Ch. 14.2 - In Exercises 942, find the area of the indicated...Ch. 14.2 - Prob. 43E Ch. 14.2 - Prob. 44E Ch. 14.2 - Prob. 45E Ch. 14.2 - Oil Production in Mexico: Pemex The rate of crude...Ch. 14.2 - Prob. 47E Ch. 14.2 - Prob. 48E Ch. 14.2 - Prob. 49E Ch. 14.2 - Prob. 50E Ch. 14.2 - Prob. 51E Ch. 14.2 - Prob. 52E Ch. 14.2 - Prob. 53E Ch. 14.2 - Prob. 54E Ch. 14.2 - Prob. 55E Ch. 14.2 - Prob. 56E Ch. 14.2 - Prob. 57E Ch. 14.2 - Prob. 58E Ch. 14.3 - Prob. 1E Ch. 14.3 - Prob. 2E Ch. 14.3 - Prob. 3E Ch. 14.3 - Prob. 4E Ch. 14.3 - Prob. 5E Ch. 14.3 - Prob. 6E Ch. 14.3 - Prob. 7E Ch. 14.3 - Prob. 8E Ch. 14.3 - Prob. 9E Ch. 14.3 - Prob. 10E Ch. 14.3 - In Exercises 11 and 12, some values of a function...Ch. 14.3 - Prob. 12E Ch. 14.3 - Prob. 13E Ch. 14.3 - Prob. 14E Ch. 14.3 - Prob. 15E Ch. 14.3 - Prob. 16E Ch. 14.3 - Prob. 17E Ch. 14.3 - Prob. 18E Ch. 14.3 - Prob. 19E Ch. 14.3 - Prob. 20E Ch. 14.3 - In Exercises 1324, calculate the 5-unit moving...Ch. 14.3 - Prob. 22E Ch. 14.3 - Prob. 23E Ch. 14.3 - Prob. 24E Ch. 14.3 - Prob. 25E Ch. 14.3 - Prob. 26E Ch. 14.3 - Prob. 27E Ch. 14.3 - Prob. 28E Ch. 14.3 - Prob. 29E Ch. 14.3 - Prob. 30E Ch. 14.3 - Prob. 31E Ch. 14.3 - Prob. 32E Ch. 14.3 - Prob. 33E Ch. 14.3 - Prob. 34E Ch. 14.3 - Television Advertising The cost, in millions of...Ch. 14.3 - Television Advertising The cost, in millions of...Ch. 14.3 - Prob. 37E Ch. 14.3 - Prob. 38E Ch. 14.3 - Prob. 39E Ch. 14.3 - Health Expenditures Annual expenditures on health...Ch. 14.3 - Prob. 41E Ch. 14.3 - Prob. 42E Ch. 14.3 - Prob. 43E Ch. 14.3 - Prob. 44E Ch. 14.3 - Prob. 45E Ch. 14.3 - Prob. 46E Ch. 14.3 - Prob. 47E Ch. 14.3 - Prob. 48E Ch. 14.3 - Prob. 49E Ch. 14.3 - Prob. 50E Ch. 14.3 - Prob. 51E Ch. 14.3 - Prob. 52E Ch. 14.3 - Prob. 53E Ch. 14.3 - Prob. 54E Ch. 14.3 - Prob. 55E Ch. 14.3 - Pasta Imports in the 1990s In 1990 the United...Ch. 14.3 - Prob. 57E Ch. 14.3 - Prob. 58E Ch. 14.3 - Prob. 59E Ch. 14.3 - Prob. 60E Ch. 14.3 - Prob. 61E Ch. 14.3 - Prob. 62E Ch. 14.3 - Prob. 63E Ch. 14.3 - Prob. 64E Ch. 14.3 - Prob. 65E Ch. 14.3 - Prob. 66E Ch. 14.3 - Prob. 67E Ch. 14.3 - Prob. 68E Ch. 14.4 - In Exercises 112, calculate the consumers surplus...Ch. 14.4 - Prob. 2E Ch. 14.4 - Prob. 3E Ch. 14.4 - Prob. 4E Ch. 14.4 - Prob. 5E Ch. 14.4 - Prob. 6E Ch. 14.4 - Prob. 7E Ch. 14.4 - Prob. 8E Ch. 14.4 - Prob. 9E Ch. 14.4 - In Exercises 112, calculate the consumers surplus...Ch. 14.4 - Prob. 11E Ch. 14.4 - Prob. 12E Ch. 14.4 - Prob. 13E Ch. 14.4 - Prob. 14E Ch. 14.4 - Prob. 15E Ch. 14.4 - Prob. 16E Ch. 14.4 - Prob. 17E Ch. 14.4 - Prob. 18E Ch. 14.4 - Prob. 19E Ch. 14.4 - In Exercises 1324, calculate the producers surplus...Ch. 14.4 - Prob. 21E Ch. 14.4 - Prob. 22E Ch. 14.4 - Prob. 23E Ch. 14.4 - Prob. 24E Ch. 14.4 - Prob. 25E Ch. 14.4 - Prob. 26E Ch. 14.4 - Prob. 27E Ch. 14.4 - Prob. 28E Ch. 14.4 - Prob. 29E Ch. 14.4 - Prob. 30E Ch. 14.4 - Prob. 31E Ch. 14.4 - Prob. 32E Ch. 14.4 - In Exercises 3136, find the total value of the...Ch. 14.4 - Prob. 34E Ch. 14.4 - Prob. 35E Ch. 14.4 - Prob. 36E Ch. 14.4 - Prob. 37E Ch. 14.4 - Fast Food A fast-food outlet finds that the demand...Ch. 14.4 - Prob. 39E Ch. 14.4 - Prob. 40E Ch. 14.4 - Revenue: Walmart The annual revenue earned by...Ch. 14.4 - Prob. 42E Ch. 14.4 - Prob. 43E Ch. 14.4 - Prob. 44E Ch. 14.4 - Prob. 45E Ch. 14.4 - Prob. 46E Ch. 14.4 - Prob. 47E Ch. 14.4 - Saving for College When your first child is born,...Ch. 14.4 - Prob. 49E Ch. 14.4 - Prob. 50E Ch. 14.4 - Prob. 51E Ch. 14.4 - Prob. 52E Ch. 14.4 - Valuing Future Income Inga was injured and can no...Ch. 14.4 - Prob. 54E Ch. 14.4 - Prob. 55E Ch. 14.4 - Prob. 56E Ch. 14.4 - Prob. 57E Ch. 14.4 - Prob. 58E Ch. 14.4 - Prob. 59E Ch. 14.4 - Prob. 60E Ch. 14.4 - Prob. 61E Ch. 14.4 - Prob. 62E Ch. 14.5 - In Exercises 126, decide whether or not the given...Ch. 14.5 - Prob. 2E Ch. 14.5 - Prob. 3E Ch. 14.5 - Prob. 4E Ch. 14.5 - Prob. 5E Ch. 14.5 - Prob. 6E Ch. 14.5 - Prob. 7E Ch. 14.5 - Prob. 8E Ch. 14.5 - Prob. 9E Ch. 14.5 - Prob. 10E Ch. 14.5 - Prob. 11E Ch. 14.5 - Prob. 12E Ch. 14.5 - Prob. 13E Ch. 14.5 - Prob. 14E Ch. 14.5 - Prob. 15E Ch. 14.5 - Prob. 16E Ch. 14.5 - Prob. 17E Ch. 14.5 - Prob. 18E Ch. 14.5 - Prob. 19E Ch. 14.5 - Prob. 20E Ch. 14.5 - Prob. 21E Ch. 14.5 - Prob. 22E Ch. 14.5 - Prob. 23E Ch. 14.5 - Prob. 24E Ch. 14.5 - Prob. 25E Ch. 14.5 - Prob. 26E Ch. 14.5 - Prob. 27E Ch. 14.5 - Prob. 28E Ch. 14.5 - Prob. 29E Ch. 14.5 - Prob. 30E Ch. 14.5 - Prob. 31E Ch. 14.5 - Prob. 32E Ch. 14.5 - Prob. 33E Ch. 14.5 - Prob. 34E Ch. 14.5 - Prob. 35E Ch. 14.5 - Revenue from New Home Sales Revenue from the sale...Ch. 14.5 - Prob. 37E Ch. 14.5 - Prob. 38E Ch. 14.5 - Prob. 39E Ch. 14.5 - Prob. 40E Ch. 14.5 - Prob. 41E Ch. 14.5 - Prob. 42E Ch. 14.5 - Prob. 43E Ch. 14.5 - Prob. 44E Ch. 14.5 - Prob. 45E Ch. 14.5 - Prob. 46E Ch. 14.5 - Prob. 47E Ch. 14.5 - Prob. 48E Ch. 14.5 - Prob. 49E Ch. 14.5 - Prob. 50E Ch. 14.5 - Prob. 51E Ch. 14.5 - Prob. 52E Ch. 14.5 - Prob. 53E Ch. 14.5 - Prob. 54E Ch. 14.5 - Prob. 55E Ch. 14.5 - Meteor Impacts (continuing Exercise 55.) a....Ch. 14.5 - Prob. 57E Ch. 14.5 - Prob. 58E Ch. 14.5 - Prob. 59E Ch. 14.5 - Prob. 60E Ch. 14.5 - Prob. 61E Ch. 14.5 - Prob. 62E Ch. 14.5 - Prob. 63E Ch. 14.5 - Prob. 64E Ch. 14.5 - Prob. 65E Ch. 14.6 - Prob. 1E Ch. 14.6 - Prob. 2E Ch. 14.6 - In Exercises 1-10, find the general solution of...Ch. 14.6 - Prob. 4E Ch. 14.6 - Prob. 5E Ch. 14.6 - Prob. 6E Ch. 14.6 - Prob. 7E Ch. 14.6 - Prob. 8E Ch. 14.6 - Prob. 9E Ch. 14.6 - Prob. 10E Ch. 14.6 - Prob. 11E Ch. 14.6 - Prob. 12E Ch. 14.6 - Prob. 13E Ch. 14.6 - Prob. 14E Ch. 14.6 - Prob. 15E Ch. 14.6 - Prob. 16E Ch. 14.6 - Prob. 17E Ch. 14.6 - Prob. 18E Ch. 14.6 - Prob. 19E Ch. 14.6 - Prob. 20E Ch. 14.6 - Prob. 21E Ch. 14.6 - Prob. 22E Ch. 14.6 - Prob. 23E Ch. 14.6 - Newtons Law of Cooling For coffee in a paper cup,...Ch. 14.6 - Prob. 25E Ch. 14.6 - Prob. 26E Ch. 14.6 - Prob. 27E Ch. 14.6 - Prob. 28E Ch. 14.6 - Determining Demand Nancys Chocolates estimates...Ch. 14.6 - Prob. 30E Ch. 14.6 - Prob. 31E Ch. 14.6 - Prob. 32E Ch. 14.6 - Prob. 33E Ch. 14.6 - Prob. 34E Ch. 14.6 - Prob. 35E Ch. 14.6 - Prob. 36E Ch. 14.6 - Prob. 37E Ch. 14.6 - Prob. 38E Ch. 14.6 - Prob. 39E Ch. 14.6 - Prob. 40E Ch. 14.6 - Prob. 41E Ch. 14.6 - Prob. 42E Ch. 14.6 - Exercises 4144 require the use of technology....Ch. 14.6 - Prob. 44E Ch. 14.6 - Prob. 45E Ch. 14.6 - Prob. 46E Ch. 14.6 - Prob. 47E Ch. 14.6 - Prob. 48E Ch. 14.6 - Prob. 49E Ch. 14.6 - Prob. 50E Ch. 14 - Prob. 1RE Ch. 14 - Prob. 2RE Ch. 14 - Prob. 3RE Ch. 14 - In Exercises 1-10, evaluate the given integral....Ch. 14 - Prob. 5RE Ch. 14 - Prob. 6RE Ch. 14 - Prob. 7RE Ch. 14 - Prob. 8RE Ch. 14 - Prob. 9RE Ch. 14 - Prob. 10RE Ch. 14 - Prob. 11RE Ch. 14 - Prob. 12RE Ch. 14 - Prob. 13RE Ch. 14 - Prob. 14RE Ch. 14 - Prob. 15RE Ch. 14 - Prob. 16RE Ch. 14 - Prob. 17RE Ch. 14 - Prob. 18RE Ch. 14 - Prob. 19RE Ch. 14 - Prob. 20RE Ch. 14 - Prob. 21RE Ch. 14 - Prob. 22RE Ch. 14 - Prob. 23RE Ch. 14 - Prob. 24RE Ch. 14 - Prob. 25RE Ch. 14 - Prob. 26RE Ch. 14 - Prob. 27RE Ch. 14 - Prob. 28RE Ch. 14 - Prob. 29RE Ch. 14 - In Exercises 27-32, decide whether the given...Ch. 14 - Prob. 31RE Ch. 14 - Prob. 32RE Ch. 14 - Prob. 33RE Ch. 14 - Prob. 34RE Ch. 14 - Prob. 35RE Ch. 14 - Prob. 36RE Ch. 14 - Prob. 37RE Ch. 14 - Spending on Shipping During the past 10 months,...Ch. 14 - Prob. 39RE Ch. 14 - Investments OHaganBooks.com keeps its cash...Ch. 14 - Prob. 41RE Ch. 14 - Prob. 42RE Ch. 14 - Prob. 43RE Ch. 14 - Prob. 44RE Ch. 14 - Prob. 45RE Ch. 14 - Prob. 46RE Ch. 14 - Acquisitions The Megabucks Corporation is...Ch. 14 - Prob. 48RE Ch. 14 - Prob. 49RE Ch. 14 - Prob. 50RE

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The Present value of the award where, Max was to be awarded the present value of the income $ 30 , 000 per year over 30 years at 6 % interest rate and increasing income $ 1 , 500 per year after injury.

Solution Summary: The author calculates the present value of the award, based on the rate of interest, given by 6%.

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To calculate: The Present value of the award where, Max was to be awarded the present value of the income $30,000 per year over 30 years at 6% interest rate and increasing income $1,500 per year after injury.

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Chapter 14 Solutions