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1. This problem relates to Future Value, and Future income streams. Assume continuous compounding of interest. (a) (10 pts) Find the present value of a
1. This problem relates to Future Value, and Future income streams. Assume continuous compounding of interest. (a) (10 pts) Find the present value of a single future payment of FV = $50, 000 to be made 20 years from now, assuming an interest rate of 5 percent. (b) (10 pts) Suppose you want a future income stream ( annual payments) of FV (t) = 500t for 20 years. Find the present value of this income stream, assuming an interest rate of 5 percent
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