Disability Insurance Settlement. A movie stuntman who receives an annual salary of $180,000 per year is injured and can no longer work. Through a settlement with an insurance company, he is granted a continuous income stream of $120,000 per year for 20 yr. The stuntman invests the money at 4% compounded continuously. a. Find the accumulated future value of the continuous income stream. Round your answer to the nearest $10. b. Thinking that he might not live 20 yr, the stuntman negotiates a flat sum payment from the insurance company, which is the accumulated present value of the continuous income stream. What is that amount? Round your answer to the nearest $10.
Disability Insurance Settlement. A movie stuntman who receives an annual salary of $180,000 per year is injured and can no longer work. Through a settlement with an insurance company, he is granted a continuous income stream of $120,000 per year for 20 yr. The stuntman invests the money at 4% compounded continuously. a. Find the accumulated future value of the continuous income stream. Round your answer to the nearest $10. b. Thinking that he might not live 20 yr, the stuntman negotiates a flat sum payment from the insurance company, which is the accumulated present value of the continuous income stream. What is that amount? Round your answer to the nearest $10.
Solution Summary: The author calculates the accumulated future value of the continuous income stream where a movies stuntman invests 12,000 per year at 4% compounded continuously for 20 years.
Disability Insurance Settlement. A movie stuntman who receives an annual salary of $180,000 per year is injured and can no longer work. Through a settlement with an insurance company, he is granted a continuous income stream of $120,000 per year for 20 yr. The stuntman invests the money at 4% compounded continuously.
a. Find the accumulated future value of the continuous income stream. Round your answer to the nearest $10.
b. Thinking that he might not live 20 yr, the stuntman negotiates a flat sum payment from the insurance company, which is the accumulated present value of the continuous income stream. What is that amount? Round your answer to the nearest $10.
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, calculus and related others by exploring similar questions and additional content below.
01 - What Is A Differential Equation in Calculus? Learn to Solve Ordinary Differential Equations.; Author: Math and Science;https://www.youtube.com/watch?v=K80YEHQpx9g;License: Standard YouTube License, CC-BY
Higher Order Differential Equation with constant coefficient (GATE) (Part 1) l GATE 2018; Author: GATE Lectures by Dishank;https://www.youtube.com/watch?v=ODxP7BbqAjA;License: Standard YouTube License, CC-BY