Q17. Please show all work A movie stuntman receives an annual salary of $90,000, but becomes a quadriplegic after jumping from a cliff into water that is too shallow. He can never work again as a stuntman. Through a legalsettlement with his insurance company, he is granted a continuous income stream of $90,000 per year for 20 years. The stuntman invests the money 8.3%, compounded continuously.a) Find the accumulated future value of the continuous income stream.b) Thinking that he might not live 20 years, the stuntman negotiates a flat sum payment from the insurance company, which is the accumulated present value of the continuous income stream. What isthat amount?a) The accumulated future value is $(Round to the nearest ten dollars as needed.)b) The accumulated present value is $(Round to the nearest ten dollars as needed.)0

Annual income: $90,000Number of years: 20Interest rate: 8.3%

Answered: A movie stuntman receives an annual…

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter19: Deferred Compensation

Section: Chapter Questions

Problem 49P

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