l The price of a commodity rises according to the function f(t) 20e2t, where t 0 at present and the unit of t is one year If the market rate of interest is 10 and interest is compounded continuously, find (i) the present value after 2 years (ii) the time t to that maximizes present value l The pri...

To find the present value of a future amount using continuous compounding we can use the formula Pre ...

l The price of a commodity rises according to the function f(t) = 20e2t, where t...

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Microeconomics An Intuitive Approach with Calculus

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Authors: Thomas Nechyba

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