6.2 Income Streams 1. What is the formula for the future value of an income stream? Write out what each variable/part of the formula means. 2. What is the formula for the present value of an income stream? 3. A company expects 150 thousand dollars per year in profits for the next five years. Profits are continuously invested in an account bearing 3.1% interest compounded continuously. (a) Find a formula for R(t), the flow rate. (b) What's the five-year present value of this income stream? boillid (c) What's the five-year future value of this income stream? e tion andt novo moy zay ciallob 4. Company Z showed a profit of $2 million last year. The CEO of the company expects the profit to decrease by a hundred thousand dollars per year over the next six years and the profits will be continuously invested in an account bearing a 5.1% APR compounded continuously. Calculate the six-year present value and six-year future value. (a) Find a formula for R(t), the flow rate. (b) Calculate the six-year future value. (c) Calculate the six-year present value