A fund is established to provide a continuous revenue stream at a constant rate for a prescribed number of years when the discount rate is 4%.
(a) Calculate the present value if the fund provides $4000 per year for eight years. Give your answer to the nearest cent.
(b) Determine the number of years that will fund an annual pay-out of $4000 if the present value is $45 000. Give your answer to the nearest year.