Business Calculus

Question

Find the total value TV of the given income stream and also find its future value FV (at the end of the given interval) using the given interest rate. HINT [See Examples 4 and 5.] (Round your answers to the nearest cent.)

R(t) = 47,000e^0.02t, 0 ≤ t ≤ 10, at 6%

Find the Total Value and Future Value

Answer 1

fv=p(1+int/c)^(nt)

47.000(1.02)^10=$57292.74

Your formula=470008e^(.02*10)=$57405.93

You started-off with 47g.