You are offered and investment opportunity that will produce continuous income at a constant rate of 8000 dollars/year for 20 years. If the annual interest rate is 9%, continuously compounded, what is the present value of this income stream? Present value = dollars

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter6: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 8RE: Suppose an investment account is opened with aninitial deposit of 10,500 earning 6.25...
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 You are offered and investment opportunity that will produce continuous income at a constant rate of 8000 dollars/year for 20 years. If the annual interest rate is 9%, continuously compounded, what is the present value of this income stream?


Present value =  dollars

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