An heiress receives an income stream from a will at a rate of f(t) = 50,000e0.024...
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An heiress receives an income stream from a will at a rate of f(t) = 50,000e0.024 dollars per year. She invests this income and earns 4.5% 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. $ Additional Material An heiress receives an income stream from a will at a rate of f(t) = 50,000e0.024 dollars per year. She invests this income and earns 4.5% 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. $ Additional Material
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a To calculate the future value of the income after ten years we need to use the formula for continu... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0078025556
8th edition
Authors: Robert Libby, Patricia Libby, Daniel Short
Posted Date:
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