$($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 $7\%.$

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 $7\%$ 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 $7\%$ annual interest rate.