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: 51

Answer

$$ \left( f(x)=500e^{-0.04t}, \quad r =8, \quad 10 \% per yr \right) $$ 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)=500e^{-0.04t} $ is the rate of continuous money flow at an interest rate $r=0.1$ for $T=8$ years, then the accumulated amount of money flow at time $T=8$ is $$ \begin{aligned} A &=e^{rT}\int_{0}^{T} f(x) e^{-rt}dt.\\ &=e^{0.1(8)} \int_{0}^{8} 500 e^{-0.04 t} \cdot e^{-0.1 t} d t \\ &=e^{0.8} \int_{0}^{8} 500 e^{-0.14 t} d t \\ &=\left.e^{0.8}\left(\frac{500}{-0.14} e^{-0.14 t}\right)\right|_{0} ^{8} \\ &=e^{0.8}\left[\frac{500}{-0.14}\left(e^{-1.12}-1\right)\right] \\ & \approx 5354.971041 \end{aligned} $$ So, the accumulated amount of money flow at time $T=8$ is $\approx 5354.97.$

Work Step by Step

$$ \left( f(x)=500e^{-0.04t}, \quad r =8, \quad 10 \% per yr \right) $$ 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)=500e^{-0.04t} $ is the rate of continuous money flow at an interest rate $r=0.1$ for $T=8$ years, then the accumulated amount of money flow at time $T=8$ is $$ \begin{aligned} A &=e^{rT}\int_{0}^{T} f(x) e^{-rt}dt.\\ &=e^{0.1(8)} \int_{0}^{8} 500 e^{-0.04 t} \cdot e^{-0.1 t} d t \\ &=e^{0.8} \int_{0}^{8} 500 e^{-0.14 t} d t \\ &=\left.e^{0.8}\left(\frac{500}{-0.14} e^{-0.14 t}\right)\right|_{0} ^{8} \\ &=e^{0.8}\left[\frac{500}{-0.14}\left(e^{-1.12}-1\right)\right] \\ & \approx 5354.971041 \end{aligned} $$ So, the accumulated amount of money flow at time $T=8$ is $\approx 5354.97.$
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