Business and Economic Applications

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Business and Economic Applications
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Objectives

• Students will be able to
• Apply integrals to business and economic
  application problems.

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Total Money Flow
If f(x) is the rate of money flow, the then total
money flow over the time interval x 0 to x t
is given by
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Present Value
If f(x) is the rate of continuous money flow at
an interest rate r for t years, then the present
value is
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Accumulated Amount of Money Flow
If f(x) is the rate of money flow at an interest
rate r at time x, the accumulated amount of money
flow at time t is
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Example 1

• The function
  represents the rate of flow of money in dollars
  per year. Assume a 15-year period at 8
  compounded continuously. Find the present value
  and the accumulated amount of money flow at t
  15.