A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN: 9780134753119
Author: Sheldon Ross
Publisher: PEARSON
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An investor purchased a piece of waterfront property. Because of the development of a marina in the vicinity, the market
value of the property is expected to increase according to the rule
V(t) = 50,000e♥
where V(t) is measured in dollars and t is the time (in years) from the present. If the rate of appreciation is expected to be
4%/year compounded continuously for the next 8 years, find an expression for the present value P(t) of the property's
market price valid for the next 8 years.
P(t) =
What is P(t) expected to be in 2 years? (Round your answer to the nearest cent.)
$
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Transcribed Image Text:An investor purchased a piece of waterfront property. Because of the development of a marina in the vicinity, the market value of the property is expected to increase according to the rule V(t) = 50,000e♥ where V(t) is measured in dollars and t is the time (in years) from the present. If the rate of appreciation is expected to be 4%/year compounded continuously for the next 8 years, find an expression for the present value P(t) of the property's market price valid for the next 8 years. P(t) = What is P(t) expected to be in 2 years? (Round your answer to the nearest cent.) $
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