Question

Can someone help me understand question B ...
see Screenshot...

and well... C and D would be nice too.. but for now.. just B

Answer 1

okay can I just ask, what is question B asking..?
If Question A is
​p(t) = (100000+t) E^(-0.2 t)
\[\Large PV = \int\limits_{0}^{\infty} E^{-0.06 t} P(t) dt \]

B) Still assuming a projected interest rate of 6 % compounded every instant, how much would you have to plunk down for a perpetual annuity that would pay you at the same rate?

Answer 2

what do they mean by 'pay you at the same rate' ?
pay at the same rate as what?
6%?
p[t] ?
a 100000 payout then?
a 384630 payout at some time in the future?

Answer 3

and the answer is....

Answer 4

no