Question

The function f(x) - 0 04x500 represents the rate of flow of money in dollars per year. Assume a 10-year period at 8% compounded continuously. Find (A) the present value and (b) the accumulated amount of money sowat 10 (A) The present value iss (Do not round until the final answer. Then round to the nearest cent as needed.) (B) The accumulated amount of money flow at 10 is $ (Do not round until the final answer. Then round to the newest cent as needed.)

Answer 1

(2)

Solution:
Given that s- The rate of flow starts a continuous 900 money Po= $900 R = 3% 0.03 = 5 years We know that formula, law of growth money tow is SCH = Pepe & The present scalue is, pv=Jct). I sct). et ath & also, The future value is 아 A=pve Where, Y=5% = 0.05 T25 years

Therefore, py=38 Rt. Camat (f(t) = Poeft ( ૧૦૦ ટે o 5 s/ (0.03-0.05) - 5 -0.02t = 900 se 2003 2002 = 900 ē ook -0.02 c 4500 [l- ēCol] 428.2.3161 N PV ² 4282.32 Present value is = 4,282.32 final amount is $ 4,282.32 Thank you