I don't understand this problem. How do I use t=10?
The function represents the rate of flow of money in dollars per year. Assume a 10-year period and find the accumulated amount of money flow at t = 10.
f(x) = 500 at 14% compounded continuously
I don't understand this problem. How do I use t=10?
The function represents the rate of flow of money in dollars per year. Assume a 10-year period and find the accumulated amount of money flow at t = 10.
f(x) = 500 at 14% compounded continuously
You can just build these things. Consider the following engine:
$\displaystyle
\sum_{m=1}^{n} \frac{500}{n}\cdot \left(1+\frac{0.14}{n}\right)^{m}
$
What does it mean for n = 1? n = 2? n = 4? n = 12? n = 52? n = 365?
Now ponder this.
$\displaystyle
\int_{0}^{1} 500 \cdot e^{0.14 \cdot t}\;dt
$
Are these two expressions related?