Present Value In Exercises 89 and 90, find the present value of a continuous income flow

Chapter 8, Problem 90

(choose chapter or problem)

In Exercises 89 and 90, find the present value  P  of a continuous income flow of  \(c(t)\)  dollars per year for

\(P=\int_{0}^{t_{1}} c(t) e^{-r t} d t\)

where  \(t_{1}\)  is the time in years and  \(r\)  is the annual interest rate compounded continuously.

\(c(t)=30,000+500 t, r=7 \%, t_{1}=5\)

Text Transcription:

c(t)

P = int_{0}^{t_{1}} c(t) e^{-rt} dt

t_1

r

c(t) = 30,000 + 500 t, r = 7%, t_{1} = 5