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: 53

Answer

$$ \left( f(x)=1000+200t, \quad T =10, \quad 9\% \text{ per yr. } \right) $$ If $f(t)=1000+200t $ is the rate of continuous money flow at an interest rate $r=0.09$ for $T=10$ years, then the accumulated amount of money flow at time $T=10$ is $$ \begin{aligned} A &=e^{rT}\int_{0}^{T} f(x) e^{-rt}dt\\ &=e^{(0.09)(10)} \int_{0}^{10} (1000+200 t) e^{-0.09 t} d t \\ &\approx \$ 30,035.17 \end{aligned} $$

Work Step by Step

$$ \left( f(x)=1000+200t, \quad T =10, \quad 9\% \text{ per yr. } \right) $$ 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+200t $ is the rate of continuous money flow at an interest rate $r=0.09$ for $T=10$ years, then the accumulated amount of money flow at time $T=10$ is $$ \begin{aligned} A &=e^{rT}\int_{0}^{T} f(x) e^{-rt}dt\\ &=e^{(0.09)(10)} \int_{0}^{10} (1000+200 t) e^{-0.09 t} d t \\ &=\left.e^{0.9}\left[\frac{1000}{-0.09} e^{0.09 t}+\frac{200}{(0.09)^{2}}(-0.09 t-1) e^{-0.09 t}\right]\right|_{0} ^{10} \\ &=e^{0.9}\left[\frac{1000}{-0.09}\left(e^{-0.9}-1\right)+\frac{200}{(0.09)^{2}}\left(-1.9 e^{-0.9}+1\right)\right]\\ &\approx \$ 30,035.17 \end{aligned} $$ So, the accumulated amount of money flow at time $T=10$ is $\approx 30,035.17$
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