Milan B.

asked • 09/04/20

Calculate the investment worth in 5 years using definitive integration


john whos a store manager is considering 5yr investment and estimated that t years from now it will be generating a continuous income stream of 3000 + 50t dollar per year. If the prevailing annual interest rate remains fixed at 4% compounded continuously during the entire 5 year term, what should be the investment worth in 5 years? (Future value)

where T is duration of the term, f(t) is continuous generating income per year, r is annual rate of interest.

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