Lucky Larry wins $12,000,000 in a state lottery. The standard way in which the state pays such lottery winnings is at a constant rate of $480,000 per year for 25 years. Round your answer to the nearest $10. If Lucky invests each payment from the state at 5% compounded continuously, what is the accumulated future value of the income stream? $ What is the accumulated present value of the income stream at 5%, compounded continuously? (This amount represents what the state has to invest at the start of its lottery payments, assuming the 5% interest rate holds.)

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Your Question:
Lucky Larry wins $12,000,000 in a state lottery. The standard way in which the state pays such lottery
winnings is at a constant rate of $480,000 per year for 25 years. Round your answer to the nearest $10.
If Lucky invests each payment from the state at 5% compounded continuously, what is the accumulated
future value of the income stream?
$
What is the accumulated present value of the income stream at 5%, compounded continuously? (This
amount represents what the state has to invest at the start of its lottery payments, assuming the 5%
interest rate holds.)
Transcribed Image Text:Lucky Larry wins $12,000,000 in a state lottery. The standard way in which the state pays such lottery winnings is at a constant rate of $480,000 per year for 25 years. Round your answer to the nearest $10. If Lucky invests each payment from the state at 5% compounded continuously, what is the accumulated future value of the income stream? $ What is the accumulated present value of the income stream at 5%, compounded continuously? (This amount represents what the state has to invest at the start of its lottery payments, assuming the 5% interest rate holds.)
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ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage