Question

Given the investment flow
I(t) = 2400 square root(t)
(a) Calculate the total capital formation during the first 4 years.
(b) Find an expression for the annual capital formation during the N th year and hence
find the first year in which the annual capital formation exceeds $4000.

Answer 1

(a)\[\int\limits_{0}^{4}2400\sqrt{t}dt\]
(b)\[\int\limits_{n}^{n+1}2400\sqrt{t}dt\]