The function in Exercise represents the rate of flow of money in dollars per year. Assume a 10-year period at 8% compounded continuously and find the following: (a) the present value; (b) the accumulated amount of money flow at t=10.

f (t) = 800e0.05t

Question

Mathematics

Ocean

26 December, 06:20

The function in Exercise represents the rate of flow of money in dollars per year. Assume a 10-year period at 8% compounded continuously and find the following: (a) the present value; (b) the accumulated amount of money flow at t=10.

f (t) = 800e0.05t

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Answers (1)

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Myla Cherry · Answer 1

Answer: f (t) = 800e^0.08*10 =

= 800 (2.7183^0.08*10

=$8666.3

Step-by-step explanation:

f (t) = pe^rt where f (t) is future value,

P is present value, e is mathematical constant and it is approximately equal to 2.7183, r is rate of interest and it is equal to 8%, t is number of years and it is equal to 10. Future value is the accumulated value.

P = f (t) : {e^rt).

The function in Exercise represents the rate of flow of money in dollars per year. Assume a 10-year period at 8% compounded continuously and find the following: (a) the present value; (b) the accumulated amount of money flow at t=10.f (t) = 800e0.05t

The function in Exercise represents the rate of flow of money in dollars per year. Assume a 10-year period at 8% compounded continuously and find the following: (a) the present value; (b) the accumulated amount of money flow at t=10.

f (t) = 800e0.05t