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Suppose that money is being invested at a continuous rate of p(t) = 48t? per year for n = 5 years. Using a constant force
Suppose that money is being invested at a continuous rate of p(t) = 48t? per year for n = 5 years. Using a constant force of interest of 8, you know the following: Present Value of Investment (i.e. at time t = 0 years) = K. Future Value of Investment (i.e. at time t = 5 years) = 1.5875K. Find K. Give your answer rounded to the nearest whole number (i.e. X). Note: Recall that for an annuity with a continuous payment stream rate of pt) per year (from time t = 0 to time t = n) and a constant force of interest 8, we have: PV = 1 pt).e - St dt FV = eon.Solt) .eoldt =en . PV " 0
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