Find the total value TV of the given income stream and also find its future value FV (at the end of the given interval) using the given interest rate.

R(t) = 28,000, 0 ≤ t ≤ 10, at 4%

I know TV = $280,000 because int(28000) = 28000t where t=10

I know think the formula for FV is something like:
int(28,000)e^(.04(10-t)/365) * dt

what do I put in for t though?

Question

Find the total value TV of the given income stream and also find its future value FV (at the end of the given interval) using the given interest rate.


R(t) = 28,000, 0 ≤ t ≤ 10, at 4%


I know TV = $280,000 because int(28000) = 28000t where t=10

I know think the formula for FV is something like:
int(28,000)e^(.04(10-t)/365) * dt 

what do I put in for t though?

anonymous · Answer

The correct formula I found is: integral of 28,000 * e^.04(10-t)/365 dt but I keep getting 280,153. Is this not correct?

anonymous · Answer

oh yeah, from [0,10] on that integral