$($a$)$ Find the present and future value of an income stream of $$5000$ per year for a period of $19$ years if the interest rate, compounded continuously, is $1\%.$

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 $5000$ per year invested in a bank account paying $1\%$ annual interest rate will grow to $

in $19$ years. This is the $$ value.

The $$ value of $ $$ is the lump$-$sum deposit today that will grow to $ $$ in $19$ years at a $1\%$ annual interest rate.