Suppose the Annual Rate of Income from an Investment at Any

question 10

Multiple Choice

Suppose the annual rate of income from an investment at any time t is $K ( t ) = - 100 + 50 t$ . What is the formula for the present value of the income over the next 5 years at a 6% interest rate compounded continuously?

• A) \(\int _ { 0 } ^ { 5 } ( 50 t - 100 ) e ^ { 0.06 t } d t\)
• B) \(\int _ { 0 } ^ { 5 } ( 50 t - 100 ) e ^ { - 0.06 t } d t\)
• C) \(\int _ { 1 } ^ { 5 } ( 50 t - 100 ) e ^ { - 0.06 t } d t\)
• D) \(\int _ { 1 } ^ { 5 } 50 t ^ { - 0.06 t } d t\)
• E) none of these

---

Definitions:

Market Share Theory

A concept in business and economics referring to the percentage of an industry or market's total sales that is earned by a particular company over a specified time period.

Liability

Liability refers to the state of being legally responsible for something, particularly in terms of debts or legal obligations.

Judgment

A formal decision made by a court following a lawsuit.

Identical Defective Product

Identical defective product refers to products that share the exact same flaws or defects, indicating a systematic issue in production or design.