Calculus with Applications (10th Edition)

Published by Pearson
ISBN 10: 0321749006
ISBN 13: 978-0-32174-900-0

Chapter 8 - Further Techniques and Applications of Integration - Chapter Review - Review Exercises - Page 456: 50

Answer

$$ \left( f(x)=1000, \quad r =5, \quad 6 \% \text {per yr.} \right) $$ If $f(t)=1000 $ is the rate of continuous money flow at an interest rate $r=0.06$ for $T=5 $ years, then the accumulated amount of money flow at time $T=5$ is $$ \begin{aligned} A &=e^{0.06(5)} \int_{0}^{5} 1000 e^{-0.06 t} d t \\ & \approx 5830.980126 \end{aligned} $$

Work Step by Step

$$ \left( f(x)=1000, \quad r =5, \quad 6 \% per yr \right) $$ If $f(t)$ is the rate of money flow at an interest rate $r$ at time $t$, the accumulated amount of money flow at time $T$ is $$ A=e^{rT}\int_{0}^{T} f(x) e^{-rt}dt. $$ If $f(t)=1000 $ is the rate of continuous money flow at an interest rate $r=0.06$ for $T=5 $ years, then the accumulated amount of money flow at time $T=5$ is $$ \begin{aligned} A &=e^{0.06(5)} \int_{0}^{5} 1000 e^{-0.06 t} d t \\ &=\left.e^{0.3}\left(\frac{1000}{-0.06} e^{-0.06 t}\right)\right|_{0} ^{5} \\ &=e^{0.3}\left[\frac{1000}{-0.06}\left(e^{-0.3}-1\right)\right] \\ & \approx 5830.980126 \end{aligned} $$ So, the accumulated amount of money flow at time $T=5$ is $\approx 5830.98.$
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