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Get Full Access to Calculus: Early Transcendentals - 1 Edition - Chapter 7.7 - Problem 67e
Get Full Access to Calculus: Early Transcendentals - 1 Edition - Chapter 7.7 - Problem 67e

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Perpetual annuity Imagine that today you deposit $B in a ISBN: 9780321570567 2 Solution for problem 67E Chapter 7.7 Calculus: Early Transcendentals | 1st Edition • Textbook Solutions • 2901 Step-by-step solutions solved by professors and subject experts • Get 24/7 help from StudySoup virtual teaching assistants Calculus: Early Transcendentals | 1st Edition 4 5 1 426 Reviews 21 0 Problem 67E Perpetual annuity Imagine that today you deposit$B in a savings account that earns interest at a rate of p% per year compounded continuously (see Section 6.8). The goal is to draw an income of $I per year from the account forever. The amount of money that must be deposited is , where r =p/100. Suppose you find an account that earns 12% interest annually and you wish to have an income from the account of$5000 per year. How much must you deposit today?

Step-by-Step Solution:

SOLUTION Imagine that today you deposit $B in a savings account that earns interest at a rate of p% per year compounded continuously. The goal is to draw an income of$I per year from the account Step 1Given thatGiven Where

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