(a) Explanation Given Information: The expected income, c , is c = 400 , 000 + 175 , 000 t and the time period, t 1 , is 7 years . Formula used: The expression for the actual income over a time period of t 1 is, Actual income = ∫ 0 t 1 c ( t ) d t Here, c ( t ) represents the income which is a function of time t . The method of integration by parts for two differentiable function of x , u and v is, ∫ u d v = u v − ∫ v d u Calculation: Consider the expected income function, c = 400 , 000 + 175 , 000 t . Since the time period is 4 years (b) To determine To calculate: The present value of income c = 400 , 000 + 175 , 000 t of a company for a time period of 7 years , if the actual inflation rate of 4%.

10th Edition

ISBN: 9780357265161

Author: Larson

Publisher: CENGAGE L

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Chapter 6, Problem 18RE

(a)

To determine

To calculate: The actual income of a company over a time period of 7 years if c be its expected income which is given as, c=400,000+175,000t where, 0≤t≤7.

(b)

To determine

To calculate: The present value of income c=400,000+175,000t of a company for a time period of 7 years, if the actual inflation rate of 4%.

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Chapter 6, Problem 17RE

Chapter 6, Problem 19RE

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Chapter 6 Solutions

CALCULUS: APPLIED APPROACH LOW COST MA

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The actual income of a company over a time period of 7 years if c be its expected income which is given as, c = 400 , 000 + 175 , 000 t where, 0 ≤ t ≤ 7 .

Solution Summary: The author calculates the actual income of the company over a time period of 7 years, based on 7,087,500.