(a) Find the present and future value of an income stream of $7000 per year for a period of 10 years if the interest rate, compounded continuously, is 4%. Round your answers to two decimal places. Present value = $ i Future value = $ i (b) How much of the future value is from the income stream? How much is from interest? Round your answers to two decimal places. The amount from the income stream is $ i The amount from the interest is $ i

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter6: Exponential And Logarithmic Functions
Section6.1: Exponential Functions
Problem 68SE: An investment account with an annual interest rateof 7 was opened with an initial deposit of 4,000...
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(a) Find the present and future value of an income stream of $7000 per year for a period of 10 years if the interest rate, compounded
continuously, is 4%.
Round your answers to two decimal places.
Present value = $ i
Future value = $ i
(b) How much of the future value is from the income stream? How much is from interest?
Round your answers to two decimal places.
The amount from the income stream is $ i
The amount from the interest is $ i
Transcribed Image Text:(a) Find the present and future value of an income stream of $7000 per year for a period of 10 years if the interest rate, compounded continuously, is 4%. Round your answers to two decimal places. Present value = $ i Future value = $ i (b) How much of the future value is from the income stream? How much is from interest? Round your answers to two decimal places. The amount from the income stream is $ i The amount from the interest is $ i
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