The Present Value (In Dollars)of a Continuous Flow of Income

question 215

Essay

The present value (in dollars)of a continuous flow of income of P dollars a year for t years at a rate of 100r percent compounded continuously is given by
.Evaluate this integral if

and
Give your answer in terms of e.

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Definitions:

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that describes the physiological changes the body goes through when under stress.

Selye

Hans Selye, a scientist known for his research on the effects of stress on the human body, defining the General Adaptation Syndrome.

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body has to prolonged stress, proposed by Hans Selye.

Exhaustion Stage

The final stage of the stress response, as described by Hans Selye in his General Adaptation Syndrome model, where the body's ability to resist stress becomes depleted after prolonged exposure, leading to increased vulnerability to illness.