An heiress receives an income stream from a will at a rate of f(t) = 30,000e0.023 dollars per year. She invests this income and earns 4.6% interest (compounded continuously). (Round your answers to two decimal places.) (a) What is the future value of the income after ten years? $ (b) Compute the present value of the income over a ten year period. $
An heiress receives an income stream from a will at a rate of f(t) = 30,000e0.023 dollars per year. She invests this income and earns 4.6% interest (compounded continuously). (Round your answers to two decimal places.) (a) What is the future value of the income after ten years? $ (b) Compute the present value of the income over a ten year period. $
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:An heiress receives an income stream from a will at a rate of
f(t) = 30,000e0.0230 dollars per year.
She invests this income and earns 4.6% interest (compounded continuously). (Round your answers to two decimal places.)
(a) What is the future value of the income after ten years?
$
(b) Compute the present value of the income over a ten year period.
$
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