Explanation Formula used: Present value of money: “Present value at a time T is P = ∫ 0 T f ( t ) e − r t d t where f ( t ) is the rate of continuous money flow at an interest rate r at time t .” Calculation: The assumption of the exponential growth, coupled with the initial value of $1,000 at the time t with some constant k . Then, The rate of change of income is given by f ( t ) = 1 , 000 e 0

Finite Mathematics and Calculus with Applications

1st Edition

ISBN: 9781323188361

Author: Margaret Lial

Publisher: Pearson Education

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Chapter 16, Problem 8RE

To determine

Whether the given statement, “ If f(t)=1,000e0.05t represents the rate of flow of money for a vending machine over the first five years of income, then the total money flow for the time period is given by ∫051,000e(0.05)tdt ” is true or false.

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Chapter 16, Problem 7RE

Chapter 16, Problem 9RE

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Chapter 16 Solutions

Finite Mathematics and Calculus with Applications

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Whether the given statement, “ If f ( t ) = 1 , 000 e 0.05 t represents the rate of flow of money for a vending machine over the first five years of income, then the total money flow for the time period is given by ∫ 0 5 1 , 000 e ( 0.05 ) t d t ” is true or false.

Solution Summary: The author analyzes whether the given statement, "If f(t)=1,000e0.05t represents the rate of flow of money for a vending machine over the first five years of income

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Whether the given statement, “ If f(t)=1,000e0.05t represents the rate of flow of money for a vending machine over the first five years of income, then the total money flow for the time period is given by ∫051,000e(0.05)tdt ” is true or false.

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Chapter 16 Solutions