Calculus (3rd Edition)

Published by W. H. Freeman
ISBN 10: 1464125260
ISBN 13: 978-1-46412-526-3

Chapter 7 - Exponential Functions - Chapter Review Exercises - Page 388: 104

Answer

$$\$17979.28$$

Work Step by Step

Given$$ R(t) =5000 e^{-0.1 t},\ \ \ \ \ \ r= 0.04 ,\ \ \ T= 5 $$ Then \begin{align*} \mathrm{PV}&=\int_{0}^{T} R(t) e^{-r t} d t\\ &= \int_{0}^{5} 5000 e^{-0.1 t}e^{-0.04t} d t\\ &= \int_{0}^{5} 5000 e^{-0.14 t} d t\\ &= \frac{5000}{-0.14} e^{-0.14t}\bigg|_{0}^{5}\\ &\approx \$17979.28 \end{align*}
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