Kevin spends $4,000 for an investment that generates a continuous income stream at the rate of f
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Kevin spends $4,000 for an investment that generates a continuous income stream at the rate of f1(t) = 3,000 dollars per year. His friend, Molly, makes a separate investment that also generates income continuously, but at a rate of f2(t) = 2,000e0.04t dollars per year. The couple discovers that their investments have exactly the same net value over a 4-year period. If the prevailing annual interest rate stays fixed at 5% compounded continuously, how much did Molly pay for her investment?
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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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