You Have a Bank Account That Earns 8% Nominal Annual

question 44

Short Answer

You have a bank account that earns 8% nominal annual interest compounded continuously, and you want to have $90,000 in the bank account in five years so that you can buy a brand new Porsche.You decide to deposit money in the account at a constant continuous rate of K dollars per year.Use a Riemann sum followed by an integral to determine the value of K (to the nearest dollar)so that you will have the $90,000 after five years.

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Definitions:

MR

Marginal Revenue, the increase in revenue that results from selling one additional unit of a product.

Average Total Costs

The total cost of production divided by the quantity produced, representing the per-unit cost of production.

Average Variable Costs

The sum of all variable production expenses divided by the amount of output generated.

Average Total Costs

The total of all production costs divided by the number of units produced, summarizing the per-unit cost of production.