Ch 6 Sec 5: Problem 14 Previous Problem Problem List Next Problem (1 point) Your rich uncle bequests to you a continuous, constant income stream of S2000 per year for the next 25 years. The terms of the bequest require that this income stream be paid continuously into a specific savings account that will not be available to you for 25 years This account earns 5.4% interest, compounded continuously What is the present value of the bequest? How much money would the bequest be worth (including all interest accrued) after 25 years? You discover that a bank is offering 5 9% interest compounded continuously on a certificate of deposit (CD) that matures in 25 years What is the cost of a CD at the above interest rate that would provide the same amount of money as the bequest ter 25 years? You ask the executor of the estate to buy a CD now whose value after 25 years will be the same as the amount that would be available to you in 25 years under the original terms of the bequest and to pay you the difference between the present value of the original bequest and the amount invested in the CD How much do you get now