Question: A 10-year decreasing annuity makes continuous payments at a rate of $500 per year in the 1st year, $450 per year in the 2nd year,

A 10-year decreasing annuity makes continuous payments at a rate of $500 per year in the 1st year, $450 per year in the 2nd year, $400 per year in the 3rd year, and so on. No payments are made after 10 years have elapsed. Calculate the present value of the annuity at an annual continuously compounded interest rate of 7%.

a. 1,965.61

b. 2,035.21

c. 2,036.04

d. 2,108.13

e. 2,183.67

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