Question

Find present value and the future of f(x)= 8500 + 42x

x is in years, f(x) is in thousands of dollars per year for 10 years. Interest is 4.24% annually

Answer 1

we are given

T=10

Present Value:

we can use formula

now, we can set up integral

we can use integral by parts

now, we can plug bounds

and we get

dollars............Answer

Future Value:

we can use formula

now, we can set up integral

we can solve each integrals

and combine them

dollars........Answer