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In this example problem, we find the present value for a problem that gives us the continuous income stream for the next given number of years and the annual interest rate when compounded continuously. To do so, we find the definite integral by using u-substitution. As we integrate, we adjust our bounds of integration from value of t to values of u. We then use our computed present value to determine if it is a good investment at the given price.

This video contains examples that are from Business Calculus, 1st ed, by Calaway, Hoffman, Lippman. from the Open Course Library, remixed from Dale Hoffman's Contemporary Calculus text. It was extended by David Lippman to add several additional topics. The text is licensed under the Creative Commons Attribution license. http://creativecommons.org/licenses/b...