An investment will generate income continuously at the constant rate of Q dollars per year in perpetuity.
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An investment will generate income continuously at the constant rate of Q dollars per year in perpetuity. Assuming a fixed annual interest rate r compounded continuously, use an improper integral to show that the present value of the investment is Q/r dollars.
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Related Book For
Calculus For Business, Economics And The Social And Life Sciences
ISBN: 9780073532387
11th Brief Edition
Authors: Laurence Hoffmann, Gerald Bradley, David Sobecki, Michael Price
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