$($a$)$ Find the present and future value of an income stream of $$8000$ per year for a period of $10$ years if the interest rate, compounded continuously, is $2\%.$

NOTE: Round your answer to the nearest cent.

Present value $=$$

Future value $=$$

$($b$)$ Explain, in plain language, what the present and future values mean in terms of the income stream.

A stream of income of $8000$ per year invested in a bank account paying $2\%$ annual interest rate will grow to $ in $10$ years. This is the $$ value.

A stream of income of $8000$ per year invested in a bank account paying $2\%$ annual interest rate will grow to $ in $10$ years. This is the $$ value.

The $$ value of $ $$ is the lump$-$sum deposit today that will grow to $ $$ in $10$ years at a $2\%$ annual interest rate.