# Answer to Question #7317 in Integral Calculus for nicholas

Question #7317
If an investment promises to provide A dollars at time t in the future, we can de fine the present value P as the amount that would have to be invested to generate A dollars after time t, assuming an interest rate r. This can be expressed as Pe^(rt) = A, or P = Ae^(-rt). The capital value of an asset can be de fined as the present value of all future income from that asset. If the asset lasts inde finitely, the capital value can be written as CV=&int;(lower limit:0,upper limit:infinity) K(t)e^(-rt)dt, where K(t) is the annual rate of income from the asset, r is the annual rate of interest, and t is the time in years. Suppose I sell the mining rights to a piece of land to a company for a payment of 10000e^(0.04t) dollars per year. Find the present value of this income, assuming interest of 12% annually

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!