Short Quiz of Lecture 11 (Section 1)

Calculate the integral and find the correct answer.

• 2

• 4

(a)  

(a)  

• 0

• 121.5

• 106.5

• 243

Silver Spoon, Inc., operates frozen yogurt franchises. Chris Nelson, noting how much he enjoys the yogurt and yearning to be an entrepreneur, considers buying a franchise in his hometown, Carmel, Indiana. As part of his decision to purchase, he wants to determine the accumulated present value of the income stream from the franchise over an 8-yr period. Silver Spoon tells Chris that he should expect a constant annual income stream given by 𝑅(𝑡)=$80,000𝑡, which Chris knows he can invest at an interest rate of 5%, compounded continuously. Evaluate the accumulated future value of the income stream at rate 𝑅(𝑡).

• $2,705,040

• $1813,240

• $2,938,390

• $786,919.516