Question

A money market fund has a continuous flow of money at a rate of f(t)=1500-60t^2, reaching 0 in 5 years
Find the present value of this flow if interest is 5% compounded continuously.
I don't understand the information which is "reaching 0 in 5 years". Can anyone help me please!!! Really thank you!

Answer 1

what is 60 * 5 * 5 ?

Answer 2

What do you mean?

Answer 3

what math symbol do you need to user love?

Answer 4

f (5) = 0.

Answer 5

Can I use the formula of Present value which is: \[\int\limits_{0}^{5}(1500-60t ^{2}).e ^{^{-0.05t}}.dt\]

Answer 6

Does it make sense here?

Answer 7

yes

Answer 8

Oh thank you :)

Answer 9

what answer did you get? i didn't know the formula existed so i made my own and got 4570.9. don't worry if you are too busy. your formula is on a lot of websites and it seems that that is what people use.