The capitalized cost c of an asset is computed by the formula c = c0 + ,where c0 is the initial cost of the asset, L is the lifetime (in years), r is the interest rate (compounded continuously), and m(t) is the annual cost of maintenance. Find the capitalized cost under the given assumptions.c0 = $800,000, r = 5%, m(t) = 60,000 + 2000e0.01t, L = 20

A. $1,666,078.22
B. $1,466,078.22
C. $1,586,078.22
D. $1,746,078.22


Answer: C

Mathematics

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