Calculus Concepts: An Informal Approach to the Mathematics of Change 5th Edition

Published by Brooks Cole
ISBN 10: 1-43904-957-2
ISBN 13: 978-1-43904-957-0

Chapter 6 - Analyzing Accumulated Change: Integrals in Action - 6.2 Activities - Page 436: 12

Answer

58285.54 dollars

Work Step by Step

The flow of rate of the investment stream can be expressed as: $R(t)=9706.67$ dollars per year. We have: $r=0.0475$ and $T=7 \ years$ The future value is equal to: $\int_0^{7} 9706.67e^{0.0475(7-t)} \ dt =79866. 31$ dollars Therefore, the present value is equal to:$\dfrac{\ Future Value}{e^{rT}}=\dfrac{79866. 31}{e^{0.0475\times 7}}=58285.54$ dollars
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.