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Suppose that a painting has the market value of 300(1 + 0.5t), where time, t, is measured in years since its creation. Assume the discount
Suppose that a painting has the market value of 300(1 + 0.5t), where time, t, is measured in years since its creation. Assume the discount rate is 0.02 (2 percent). Calculate the present value, v(t), of the painting at time t. At what rate is v(t) changing? Is the present value ever maximized? and if so, at what time?
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