×

> > > > Problem 21

# An oil company discovered an oil reserve of 100 million barrels. For time t > 0, in

## Problem 21 Chapter 6.5

Applied Calculus | 5th Edition

• 2901 Step-by-step solutions solved by professors and subject experts
• Get 24/7 help from StudySoup virtual teaching assistants

Applied Calculus | 5th Edition

4 5 0 254 Reviews
28
5
Problem 21

An oil company discovered an oil reserve of 100 million barrels. For time t > 0, in years, the companys extraction plan is a linear declining function of time as follows: q(t) = a bt, where q(t) is the rate of extraction of oil in millions of barrels per year at time t and b = 0.1 and a = 10. (a) How long does it take to exhaust the entire reserve? (b) The oil price is a constant \$20 per barrel, the extraction cost per barrel is a constant \$10, and the market interest rate is 10% per year, compounded continuously. What is the present value of the companys profit?

Step-by-Step Solution:
Step 1 of 3

1 Abiotic Altruism Biodiversity Biotic Biome Carrying capacity Climate Community Consumers Decomposers Density dependent Density independent Ecology Ecosystem Ecosystem diversity Genetic diversity Innate Learning Population Population ecology Primary producers Proximate Survivorship Ultimate Weather 1. The study of how individuals...

Step 2 of 3

Step 3 of 3

##### ISBN: 9781118174920

Applied Calculus was written by and is associated to the ISBN: 9781118174920. This full solution covers the following key subjects: . This expansive textbook survival guide covers 72 chapters, and 2635 solutions. The answer to “An oil company discovered an oil reserve of 100 million barrels. For time t > 0, in years, the companys extraction plan is a linear declining function of time as follows: q(t) = a bt, where q(t) is the rate of extraction of oil in millions of barrels per year at time t and b = 0.1 and a = 10. (a) How long does it take to exhaust the entire reserve? (b) The oil price is a constant \$20 per barrel, the extraction cost per barrel is a constant \$10, and the market interest rate is 10% per year, compounded continuously. What is the present value of the companys profit?” is broken down into a number of easy to follow steps, and 111 words. The full step-by-step solution to problem: 21 from chapter: 6.5 was answered by , our top Calculus solution expert on 01/22/18, 03:47PM. This textbook survival guide was created for the textbook: Applied Calculus, edition: 5. Since the solution to 21 from 6.5 chapter was answered, more than 220 students have viewed the full step-by-step answer.

#### Related chapters

Unlock Textbook Solution

An oil company discovered an oil reserve of 100 million barrels. For time t > 0, in

×
Get Full Access to Applied Calculus - 5 Edition - Chapter 6.5 - Problem 21

Get Full Access to Applied Calculus - 5 Edition - Chapter 6.5 - Problem 21