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A movie stuntman receives an annual salary of $120,000, but becomes a quadriplegic after jumping from a c work again as a stuntman. Through a legal settlement with his insurance company, he is granted a continuou years. The stuntman invests the money at 7.5%, compounded continuously. a) Find the accumulated future value of the continuous income stream. b) Thinking that he might not live 20 years, the stuntman negotiates a flat sum payment from the insurance ce value of the continuous income stream. What is that amount?

A movie stuntman receives an annual salary of $120,000, but becomes a quadriplegic after jumping from a c work again as a stuntman. Through a legal settlement with his insurance company, he is granted a continuou years. The stuntman invests the money at 7.5%, compounded continuously. a) Find the accumulated future value of the continuous income stream. b) Thinking that he might not live 20 years, the stuntman negotiates a flat sum payment from the insurance ce value of the continuous income stream. What is that amount?

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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A movie stuntman receives an annual salary of $120,000, but becomes a quadriplegic after jumping from a cliff into water that is too shallow. He can never work again as a stuntman. Through a legal settlement with his insurance company, he is granted a continuous income stream of $120,000 per year for 20 years. The stuntman invests the money at 7.5%, compounded continuously. a) Find the accumulated future value of the continuous income stream. b) Thinking that he might not live 20 years, the stuntman negotiates a flat sum payment from the insurance company, which is the accumulated present value of the continuous income stream. What is that amount? a) The accumulated future value is (Round to the nearest ten dollars as needed.) b) The accumulated present value is (Round to the nearest ten dollars as needed.).
Transcribed Image Text:A movie stuntman receives an annual salary of $120,000, but becomes a quadriplegic after jumping from a cliff into water that is too shallow. He can never work again as a stuntman. Through a legal settlement with his insurance company, he is granted a continuous income stream of $120,000 per year for 20 years. The stuntman invests the money at 7.5%, compounded continuously. a) Find the accumulated future value of the continuous income stream. b) Thinking that he might not live 20 years, the stuntman negotiates a flat sum payment from the insurance company, which is the accumulated present value of the continuous income stream. What is that amount? a) The accumulated future value is (Round to the nearest ten dollars as needed.) b) The accumulated present value is (Round to the nearest ten dollars as needed.).
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