(a) Explanation Given: Calculation: Objective of the question is to derive the formula: P V = ∫ 0 N f ( t ) e − r t d t Here, P V represents the present value. Consider that N denotes the number of years and the rate is, f ( t ) dollars/year. Also, the annual rate is r . Now divide N years into n equal sub intervals of time and consider k t h sub interval is from year t k − 1 to t k (b) To determine To approximate: the preset value of the total income flow (c) To determine To obtain: the required integral formula for present value.

7th Edition

ISBN: 9781524916817

Author: SMITH KARL J, STRAUSS MONTY J, TODA MAGDALENA DANIELE

Publisher: Kendall Hunt Publishing

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Question

Chapter 6.6, Problem 59PS

(a)

To determine

To derive: the formula ∫0Nf(t)e−rtdt and find the present value of the income

(b)

To determine

To approximate:the preset value of the total income flow

(c)

To determine

To obtain: the required integral formula for present value.

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Chapter 6.6, Problem 58PS

Chapter 6.6, Problem 60PS

Chapter 6 Solutions

Calculus

Ch. 6.1 - Prob. 1PS Ch. 6.1 - Prob. 2PS Ch. 6.1 - Prob. 3PS Ch. 6.1 - Prob. 4PS Ch. 6.1 - Prob. 5PS Ch. 6.1 - Prob. 6PS Ch. 6.1 - Prob. 7PS Ch. 6.1 - Prob. 8PS Ch. 6.1 - Prob. 9PS Ch. 6.1 - Prob. 10PS

Ch. 6.1 - Prob. 11PS Ch. 6.1 - Prob. 12PS Ch. 6.1 - Prob. 13PS Ch. 6.1 - Prob. 14PS Ch. 6.1 - Prob. 15PS Ch. 6.1 - Prob. 16PS Ch. 6.1 - Prob. 17PS Ch. 6.1 - Prob. 18PS Ch. 6.1 - Prob. 19PS Ch. 6.1 - Prob. 20PS Ch. 6.1 - Prob. 21PS Ch. 6.1 - Prob. 22PS Ch. 6.1 - Prob. 23PS Ch. 6.1 - Prob. 24PS Ch. 6.1 - Prob. 25PS Ch. 6.1 - Prob. 26PS Ch. 6.1 - Prob. 27PS Ch. 6.1 - Prob. 28PS Ch. 6.1 - Prob. 29PS Ch. 6.1 - Prob. 30PS Ch. 6.1 - Prob. 31PS Ch. 6.1 - Prob. 32PS Ch. 6.1 - Prob. 33PS Ch. 6.1 - Prob. 34PS Ch. 6.1 - Prob. 35PS Ch. 6.1 - Prob. 36PS Ch. 6.1 - Prob. 37PS Ch. 6.1 - Prob. 38PS Ch. 6.1 - Prob. 39PS Ch. 6.1 - Prob. 40PS Ch. 6.1 - Prob. 41PS Ch. 6.1 - Prob. 42PS Ch. 6.1 - Prob. 43PS Ch. 6.1 - Prob. 44PS Ch. 6.1 - Prob. 45PS Ch. 6.1 - Prob. 46PS Ch. 6.1 - Prob. 47PS Ch. 6.1 - Prob. 48PS Ch. 6.1 - Prob. 49PS Ch. 6.1 - Prob. 50PS Ch. 6.1 - Prob. 51PS Ch. 6.1 - Prob. 52PS Ch. 6.1 - Prob. 53PS Ch. 6.1 - Prob. 54PS Ch. 6.1 - Prob. 55PS Ch. 6.1 - Prob. 56PS Ch. 6.1 - Prob. 57PS Ch. 6.1 - Prob. 58PS Ch. 6.1 - 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Prob. 15PS Ch. 6.5 - Prob. 16PS Ch. 6.5 - Prob. 17PS Ch. 6.5 - Prob. 18PS Ch. 6.5 - Prob. 19PS Ch. 6.5 - Prob. 20PS Ch. 6.5 - Prob. 21PS Ch. 6.5 - Prob. 22PS Ch. 6.5 - Prob. 23PS Ch. 6.5 - Prob. 24PS Ch. 6.5 - Prob. 25PS Ch. 6.5 - Prob. 26PS Ch. 6.5 - Prob. 27PS Ch. 6.5 - Prob. 28PS Ch. 6.5 - Prob. 29PS Ch. 6.5 - Prob. 30PS Ch. 6.5 - Prob. 31PS Ch. 6.5 - Prob. 32PS Ch. 6.5 - Prob. 33PS Ch. 6.5 - Prob. 34PS Ch. 6.5 - Prob. 35PS Ch. 6.5 - Prob. 36PS Ch. 6.5 - Prob. 37PS Ch. 6.5 - Prob. 38PS Ch. 6.5 - Prob. 39PS Ch. 6.5 - Prob. 40PS Ch. 6.5 - Prob. 41PS Ch. 6.5 - Prob. 42PS Ch. 6.5 - Prob. 43PS Ch. 6.5 - Prob. 44PS Ch. 6.5 - Prob. 45PS Ch. 6.5 - Prob. 46PS Ch. 6.5 - Prob. 47PS Ch. 6.5 - Prob. 48PS Ch. 6.5 - Prob. 49PS Ch. 6.5 - Prob. 50PS Ch. 6.5 - Prob. 51PS Ch. 6.5 - Prob. 52PS Ch. 6.5 - Prob. 53PS Ch. 6.5 - Prob. 54PS Ch. 6.5 - Prob. 55PS Ch. 6.5 - Prob. 56PS Ch. 6.5 - Prob. 57PS Ch. 6.5 - Prob. 58PS Ch. 6.5 - Prob. 59PS Ch. 6.5 - Prob. 60PS Ch. 6.6 - Prob. 1PS Ch. 6.6 - Prob. 2PS Ch. 6.6 - Prob. 3PS Ch. 6.6 - Prob. 4PS Ch. 6.6 - Prob. 5PS Ch. 6.6 - Prob. 6PS Ch. 6.6 - Prob. 7PS Ch. 6.6 - Prob. 8PS Ch. 6.6 - Prob. 9PS Ch. 6.6 - Prob. 10PS Ch. 6.6 - Prob. 11PS Ch. 6.6 - Prob. 12PS Ch. 6.6 - Prob. 13PS Ch. 6.6 - Prob. 14PS Ch. 6.6 - Prob. 15PS Ch. 6.6 - Prob. 16PS Ch. 6.6 - Prob. 17PS Ch. 6.6 - Prob. 18PS Ch. 6.6 - Prob. 19PS Ch. 6.6 - Prob. 20PS Ch. 6.6 - Prob. 21PS Ch. 6.6 - Prob. 22PS Ch. 6.6 - Prob. 23PS Ch. 6.6 - Prob. 24PS Ch. 6.6 - Prob. 25PS Ch. 6.6 - Prob. 26PS Ch. 6.6 - Prob. 27PS Ch. 6.6 - Prob. 28PS Ch. 6.6 - Prob. 29PS Ch. 6.6 - Prob. 30PS Ch. 6.6 - Prob. 31PS Ch. 6.6 - Prob. 32PS Ch. 6.6 - Prob. 33PS Ch. 6.6 - Prob. 34PS Ch. 6.6 - Prob. 35PS Ch. 6.6 - Prob. 36PS Ch. 6.6 - Prob. 37PS Ch. 6.6 - Prob. 38PS Ch. 6.6 - Prob. 39PS Ch. 6.6 - Prob. 40PS Ch. 6.6 - Prob. 41PS Ch. 6.6 - Prob. 42PS Ch. 6.6 - Prob. 43PS Ch. 6.6 - Prob. 44PS Ch. 6.6 - Prob. 45PS Ch. 6.6 - Prob. 46PS Ch. 6.6 - Prob. 47PS Ch. 6.6 - Prob. 48PS Ch. 6.6 - Prob. 49PS Ch. 6.6 - Prob. 50PS Ch. 6.6 - Prob. 51PS Ch. 6.6 - Prob. 52PS Ch. 6.6 - Prob. 53PS Ch. 6.6 - Prob. 54PS Ch. 6.6 - Prob. 55PS Ch. 6.6 - Prob. 56PS Ch. 6.6 - Prob. 57PS Ch. 6.6 - Prob. 58PS Ch. 6.6 - Prob. 59PS Ch. 6.6 - Prob. 60PS Ch. 6 - Prob. 1PE Ch. 6 - Prob. 2PE Ch. 6 - Prob. 3PE Ch. 6 - Prob. 4PE Ch. 6 - Prob. 5PE Ch. 6 - Prob. 6PE Ch. 6 - Prob. 7PE Ch. 6 - Prob. 8PE Ch. 6 - Prob. 9PE Ch. 6 - Prob. 10PE Ch. 6 - Prob. 11PE Ch. 6 - Prob. 12PE Ch. 6 - Prob. 13PE Ch. 6 - Prob. 14PE Ch. 6 - Prob. 15PE Ch. 6 - Prob. 16PE Ch. 6 - Prob. 17PE Ch. 6 - Prob. 18PE Ch. 6 - Prob. 19PE Ch. 6 - Prob. 20PE Ch. 6 - Prob. 21PE Ch. 6 - Prob. 22PE Ch. 6 - Prob. 23PE Ch. 6 - Prob. 24PE Ch. 6 - Prob. 25PE Ch. 6 - Prob. 26PE Ch. 6 - Prob. 27PE Ch. 6 - Prob. 28PE Ch. 6 - Prob. 29PE Ch. 6 - Prob. 30PE Ch. 6 - Prob. 1SP Ch. 6 - Prob. 2SP Ch. 6 - Prob. 3SP Ch. 6 - Prob. 4SP Ch. 6 - Prob. 5SP Ch. 6 - Prob. 6SP Ch. 6 - Prob. 7SP Ch. 6 - Prob. 8SP Ch. 6 - Prob. 9SP Ch. 6 - Prob. 10SP Ch. 6 - Prob. 11SP Ch. 6 - Prob. 12SP Ch. 6 - Prob. 13SP Ch. 6 - 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To derive: the formula ∫ 0 N f ( t ) e − r t d t and find the present value of the income

Solution Summary: The author explains how to derive the formula displaystyleundersett_k-1overset

Concept explainers

Videos

To derive: the formula ∫0Nf(t)e−rtdt and find the present value of the income

To approximate:the preset value of the total income flow

To obtain: the required integral formula for present value.

Want to see the full answer?

Chapter 6 Solutions