Applications of Integration: Future and Present Value

The video tutorial covers the applications of integration, focusing on future and present value calculations. It explains continuous money flow and how to calculate future value using definite integrals. Two examples are provided: one for calculating the future value of a continuous money flow and another for determining the required cash flow to achieve a future value target. The tutorial includes step-by-step instructions on using u substitution for integration and verifying results with a calculator.

What is the primary focus of the applications of integration discussed in this lesson?

• Solving differential equations

• Calculating derivatives

• Finding future and present value

• Analyzing statistical data

What is the future value of a continuous money flow?

• The present value of an investment

• The initial investment amount

• The value of an investment at a future date

• The total interest earned

Which mathematical tool is used to calculate the future value of a continuous money flow?

• Differential equations

• Probability theory

• Matrix algebra

• Definite integrals

In the example provided, what is the interest rate used for calculating the future value?

• 4%

• 5%

• 7%

• 6%

What substitution method is used to evaluate the integral in the example?

• Integration by parts

• Partial fraction decomposition

• U-substitution

• Trigonometric substitution

What is the future value calculated in the example for an 8-year investment?

• $9,500.00

• $12,500.00

• $10,267.91

• $11,000.00

What is the goal of the new problem introduced in the lesson?

• To calculate the required continuous cash flow for a future value

• To analyze the effects of different interest rates

• To determine the present value of an investment

• To find the future value of a one-time deposit

What interest rate is used in the problem to find the required continuous cash flow?

• 9%

• 6%

• 8%

• 7%

What is the calculated annual cash flow required to achieve a future value of $10,000?

• $800.00

• $652.85

• $500.00

• $750.00

How many years is the investment period in the problem for finding the required cash flow?

• 5 years

• 12 years

• 8 years

• 10 years