It is estimated that t years from now an apartment complex will be generating profit for its

Question:

It is estimated that t years from now an apartment complex will be generating profit for its owner at the rate of f(t) = 80,000 + 500t dollars per year, dispensed continuously. If the profit is generated in perpetuity and the prevailing annual interest rate remains fixed at 5% compounded continuously, what is the present value of the apartment complex?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Calculus For Business, Economics And The Social And Life Sciences

ISBN: 9780073532387

11th Brief Edition

Authors: Laurence Hoffmann, Gerald Bradley, David Sobecki, Michael Price

Question Posted: