Capital value an investment produces a perpetual stream of income with a flow rate of
r(t)=1200e^0.03 t.
find the capital value at an interest rate of 7% compounded continuously.

$30,000

Step-by-step explanation:

The capital value is given by

where R(t) is annual rate

r - annual rate of interest

capital value

                      = lim at b tend to infinity

                      =lim at b tend to infinity

-30,000 { lim at b tend to inifinity

As

answer:

c. the third graph