Question
You just bought a traditional Chinese flowerpot from a TV advertising program at the cost of 250 (RMB) last night, partly because you loved that
You just bought a traditional Chinese flowerpot from a TV advertising program at the cost of 250 (RMB) last night, partly because you loved that special number very much. The program said that the flowerpot would increase in value quickly and for a long time. More exactly, t years from now the market value V(t) of the flowerpot will increase at a rate of () /2 RMB per year. If the prevailing interest rate remains constant at 10% per year compounded continuously, when will the present value of the flowerpots market value be the greatest? What is the greatest present value?
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