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Asset Value for V(t)=220-70e^(-0.4t)










































The value of assets (in thousands of RM) for Rainbow Co. is: V(t)=220-70e^(-0.4t).

“t” represents the number of years which have passed.

Find

(i) the initial VALUE of the ASSETS for t = 0 years.

(ii) the VALUE of the ASSETS for t = 5 years

(iii) the PROFIT if the owner sells the assets after 8 years.

Comments for Asset Value for V(t)=220-70e^(-0.4t)

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Jul 26, 2012
Asset Value
by: Staff

The answer:


(i) the initial VALUE of the ASSETS for t = 0 years.

V(t) = 220 - 70e^(-0.4t)

t = 0

V(0) = 220 - 70e^(-0.4*0)

V(0) = 220 - 70e^(0)

V(0) = 220 - 70*1
V(0) = 220 - 70

V(0)= 150

>>> initial VALUE of the ASSETS = RM 150 (in thousands of RM)


(ii) the VALUE of the ASSETS for t = 5 years

V(t) = 220 - 70e^(-0.4t)

t = 5

V(5) = 220 - 70e^(-0.4*5)

V(5) = 220 - 70e^(-2)

V(5) = 220 - 70 * 0.1353352832366

V(5) = 220 - 9.473469826562

V(5)= 210.526530173438

V(5)= 210.527


>>> VALUE of the ASSETS after 5 years = RM 210.527 (in thousands of RM)




(iii) the PROFIT if the owner sells the assets after 8 years.


PROFIT = V(8) - V(0)


PROFIT = 220 - 70e^(-0.4*8) - 150

PROFIT = 220 - 70e^(-3.2) - 150

PROFIT = 220 – 70*0.0407622039784 - 150

PROFIT = 67.146645721512

PROFIT = 67.147

>>> PROFIT if the owner sells the assets after 8 years = RM 67.147 (in thousands of RM)



Thanks for writing.

Staff
www.solving-math-problems.com


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