SOLVED:a. Find the size of the permanent endowment needed to generate an annual 1000 forever at a continuous interest rate of 10 % b. At this same interest rate, the size of the fund needed to generate an annual 1000 for precisely 100 years is ∫0^100 1000 e^-0.1 t d t . Evaluate this integral (it is not an improper integral), approximating your answer using a calculator. c. Notice that the cost for the first 100 years is almost the same as the cost forever. This illustrates again the principle
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