Suppose That the Output of the Machinery in a Factory

question 163

Multiple Choice

Suppose that the output of the machinery in a factory can be considered as a continuous income stream with an annual rate of flow at time t given by in thousands of dollars per year. If the annual interest rate is 4% compounded continuously, find the capital value of the machinery. Round your answer to the nearest dollar. ​

• A) $4,406,250
• B) $1,175,000
• C) $1,958,333
• D) $6,462,500
• E) $2,937,500

---

Definitions:

Per Capita Incomes

The average income earned per person in a given area (city, region, country) in a specified year.

Equally Distributed

A situation where resources, wealth, or opportunities are shared uniformly among all members of a population.

Industrially Advanced Countries (IACs)

Nations with highly developed economies, significant industrial production, and advanced technological infrastructure.

Per Capita Income

Represents the average income earned per person in a given area in a specified year.