Solve the problem.
-It is estimated that the total value of a stamp collection is given by the formula , where is the number of years from now. If the inflation rate is running continuously at per year so that the (discounted) present value of an item that will be worth in years' time is given by . Sketch the graph of the discounted value as a function of time at which the stamp collection is sold. What are the values of at the points of inflection?
A) and .
B) and .
C) and .
D) and .
Correct Answer:
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