1. The perpetual income stream to be derived from the investment in a pro- posed new soft drink is assumed to flow continually at the rate of P(t) = 2te 0.02t 2.1 If the prevailing interest rate is assumed to be 5% compounded continuously, what is the present value of the investment?

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter6: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 8RE: Suppose an investment account is opened with aninitial deposit of 10,500 earning 6.25...
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2.₁
1.
The perpetual income stream to be derived from the investment in a pro-
posed new soft drink is assumed to flow continually at the rate of
P(t) = 2te 0.02t
If the prevailing interest rate is assumed to be 5% compounded continuously, what is
the present value of the investment?
Transcribed Image Text:2.₁ 1. The perpetual income stream to be derived from the investment in a pro- posed new soft drink is assumed to flow continually at the rate of P(t) = 2te 0.02t If the prevailing interest rate is assumed to be 5% compounded continuously, what is the present value of the investment?
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