(i) Calculate the present value of a continuous revenue stream of f(t)=40000+10000t € per year if the interest rate is 8% and the money is paid over 5 years.

(ii) You have €50000 and you would like to set up a fund that would pay a continuous revenue stream of f(t)=5000 € per year. If the interest rate is 2.7%, then how many years will the fund last?

(iii) The present value of a continuous revenue stream of f(t) at an interest rate of 5% for 10 years is €16000. Suppose f(t) is constant. Calculate f(t) to two decimal places.

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i To calculate the present value of a continuous revenue stream you can use the formula for continuo... View the full answer