Question: 1. This problem relates to Future Value, and Future income streams. Assume continuous compounding of interest. (a) (10 pts) Find the present value of a

 1. This problem relates to Future Value, and Future income streams.

1. This problem relates to Future Value, and Future income streams. Assume continuous compounding of interest. (a) (10 pts) Find the present value of a single future payment of FV = $50, 000 to be made 20 years from now, assuming an interest rate of 5 percent. (b) (10 pts) Suppose you want a future income stream ( annual payments) of FV (t) = 500t for 20 years. Find the present value of this income stream, assuming an interest rate of 5 percent

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