Math Problem Statement
at time t in years, the sales are s(t) = 50e^-t thousands of dollars per year. After two years, all money is invested into bonds that pay interest at a 6.1% rate per year compounded continuously. Calculate the total value of sales over the two year period
Solution
To calculate the total value of sales over the two-year period, we need to find the integral of the sales function from to . The sales function is given by:
The total sales value over the period is the definite integral of from 0 to 2.
Let's calculate this integral.The total value of sales over the two-year period is approximately $43,233.24 (in thousands of dollars), which translates to $43,233,240.
Would you like further details on this calculation or have any other questions?
Here are some related questions:
- What is the total sales value if the time period extends to 3 years?
- How does the sales value change if the decay rate is different, say ?
- How can the future value of these sales be calculated if invested at a different interest rate?
- What is the significance of the continuous decay factor in the sales function?
- How would the total sales value change if the initial sales rate was 100 instead of 50?
- What would be the effect on the total sales if the decay rate was halved?
- How can we model a scenario where sales increase exponentially instead?
- What are the practical implications of declining sales and how can businesses mitigate this?
Tip: When dealing with continuously compounded rates or decaying functions, integrating over time provides a more accurate picture of the accumulated values or costs.
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Math Problem Analysis
Mathematical Concepts
Calculus
Exponential Functions
Integral Calculus
Continuous Compounding
Formulas
Exponential decay function: s(t) = 50e^{-t}
Integral of exponential functions
Theorems
-
Suitable Grade Level
College Level
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