The annual net sales (revenue) earned by the finnish cell phone company nokia from january 1999 to january 2004 can be approximated by r(t) = − 1.7t 2 + 5t + 28 billion euros per year (− 1 ≤ t ≤ 4) where t is time in years ( t = 0 represents january 2000 ). suppose that, from january 1999 on, nokia invested its revenue in an investment yielding 7% compounded continuously. what, to the nearest € 10 billion, would the total value of nokia's revenues have been at the end of 2003?

The total value of Nokia's revenues at the end of 2003, if it had invested its revenues at 7% compounded continuously, would have been approximately 160 billion euros.

We follow these steps to arrive at the answer.

We have the revenue equation as:

When we substitute t as -1, 0, 1, 2 and so on in the revenue function above, the answer will be in billion euros.

We will assign values to 't' based on the year and information given in the question and solve the equation as follows:

Year t + 5t + 28 = Revenues (billions of Euros)

1999 -1 -1.70 -5 28 21.30

2000 0 0.00 0 28 28.00

2001 1 -1.70 5 28. 31.30

2002 2 -6.80 10 28 31.20

2003 3 -15.30 15 28 27.70

Since Nokia has invested its revenues at 7% compounded continuously, we use the formula:

in order to compute the value of revenues at the end of 2003. In this part of the question, we have to recognise that Nokia would have invested 1999 revenues for 4 years till the end of 2003. So 't' for the formula above will be 4. On the same basis, the values revenues at the end of 2003 is calculated. The value of e is taken as 2.71828

Year Revenues t FV Revenues

1999 21.30 4 = 1.32 28.18

2000 28.00 3 = 1.23 34.54

2001 31.30 2 = 1.15 36.00

2002 31.20 1 = 1.07 33.46

2003 27.70 0 = 1.00 27.70

The sum of the 'FV Revenues' column will give us the value of Nokia's revenues as 159.89 billion euros, which when rounded off to the nearest 10 billion euros gives 160 billion euros.