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( a ) Find the present and future value of an income stream of $ 9 0 0 0 per year for a period of
a Find the present and future value of an income stream of $ per year for a period of years if the interest rate, compounded continuously, is
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 per year invested in a bank account paying annual interest rate will grow to $ in years. This is the value.
b Explain, in plain language, what the present and future values mean in terms of the income stream.
A stream of income of per year invested in a bank account paying annual interest rate will grow to $
in years. This is the value.
The value of $ is the lumpsum deposit today that will grow to $ in years at a annual interest rate.
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