An annuity pays a continuous income stream of M dollars per year into an account that pays

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An annuity pays a continuous income stream of M dollars per year into an account that pays interest at an annual rate r compounded continuously for a term of T years.

a. Show that the future value of the annuity is

b. Show that the present value of the annuity is

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Calculus For Business, Economics And The Social And Life Sciences

ISBN: 9780073532387

11th Brief Edition

Authors: Laurence Hoffmann, Gerald Bradley, David Sobecki, Michael Price

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Question Posted: Jun 24, 2023 04:40 AM

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An annuity pays a continuous income stream of M dollars per year into an account that pays

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FV = M r -(eT - 1)

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a b FV ftedt MeT...View the full answer

Calculus For Business, Economics And The Social And Life Sciences

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