1
$\begingroup$

I'm trying to find the future value of a given income stream.

$R(t) = 28000$, $0 < t < 10$, at $4\%$

I think the formula is something like:

FV = integral(28,000)((e^.4-.04t)/365)dt with a domain of [0,10]. I think the answer is 280,153 but when I submit my answer my homework page says it's incorrect.

  • 0
    The answer is definitely low. Is it $4\%$ effective yearly rate, or it is the growth like $e^{0.04 t}$. Am asking because there are in this setting two ways to indicate interest rate. The answer depends on which one is being used, but will be much bigger than $280000$ in any case.2012-12-07
  • 0
    I should've given the last bit of the question, so here's the whole thing that was asked: 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. (I had already found the TV though)2012-12-07
  • 0
    The total value is just $280000$. You have not answered the question about how rate is given. I will give an answer that leaves the rate ambiguous.2012-12-07
  • 0
    Sorry, the question doesn't provide that. I'm not sure where to pull that from in this case.2012-12-07

1 Answers 1