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Suppose the Annual Rate of Income from an Investment at Any

Question 10

Multiple Choice

Suppose the annual rate of income from an investment at any time t is K(t) =100+50tK ( t ) = - 100 + 50 t . What is the formula for the present value of the income over the next 5 years at a 6% interest rate compounded continuously?


A) 05(50t100) e0.06tdt\int _ { 0 } ^ { 5 } ( 50 t - 100 ) e ^ { 0.06 t } d t
B) 05(50t100) e0.06tdt\int _ { 0 } ^ { 5 } ( 50 t - 100 ) e ^ { - 0.06 t } d t
C) 15(50t100) e0.06tdt\int _ { 1 } ^ { 5 } ( 50 t - 100 ) e ^ { - 0.06 t } d t
D) 1550t0.06tdt\int _ { 1 } ^ { 5 } 50 t ^ { - 0.06 t } d t
E) none of these

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