Chapter 8.4, Problem 16E

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8th Edition

James Stewart

ISBN: 9781305270336

Textbook Problem

The *present value* of an income stream is the amount that would need to be invested now to match the future value as described in Exercise 15 and is given by

To determine

**To calculate:** The present value of the income.

Explanation

**Given information:**

The function of future value of the income is

The rate for received income is

Interest rate (*r*) is

Time *T* is measured in years and

**Calculation:**

Show the present value as follows:

Substitute 6 years for *T*, 0.062 for *r*, and

Sect-8.1 P-1ESect-8.1 P-2ESect-8.1 P-3ESect-8.1 P-4ESect-8.1 P-5ESect-8.1 P-6ESect-8.1 P-7ESect-8.1 P-8ESect-8.1 P-9ESect-8.1 P-10E

Sect-8.1 P-11ESect-8.1 P-12ESect-8.1 P-13ESect-8.1 P-14ESect-8.1 P-15ESect-8.1 P-16ESect-8.1 P-17ESect-8.1 P-18ESect-8.1 P-19ESect-8.1 P-20ESect-8.1 P-21ESect-8.1 P-22ESect-8.1 P-23ESect-8.1 P-24ESect-8.1 P-25ESect-8.1 P-26ESect-8.1 P-27ESect-8.1 P-28ESect-8.1 P-29ESect-8.1 P-30ESect-8.1 P-33ESect-8.1 P-34ESect-8.1 P-35ESect-8.1 P-36ESect-8.1 P-37ESect-8.1 P-38ESect-8.1 P-39ESect-8.1 P-40ESect-8.1 P-41ESect-8.1 P-42ESect-8.1 P-43ESect-8.1 P-44ESect-8.1 P-45ESect-8.1 P-46ESect-8.2 P-1ESect-8.2 P-2ESect-8.2 P-3ESect-8.2 P-4ESect-8.2 P-5ESect-8.2 P-6ESect-8.2 P-7ESect-8.2 P-8ESect-8.2 P-9ESect-8.2 P-10ESect-8.2 P-11ESect-8.2 P-12ESect-8.2 P-13ESect-8.2 P-14ESect-8.2 P-15ESect-8.2 P-16ESect-8.2 P-17ESect-8.2 P-18ESect-8.2 P-19ESect-8.2 P-20ESect-8.2 P-21ESect-8.2 P-22ESect-8.2 P-23ESect-8.2 P-24ESect-8.2 P-27ESect-8.2 P-28ESect-8.2 P-29ESect-8.2 P-30ESect-8.2 P-31ESect-8.2 P-32ESect-8.2 P-33ESect-8.2 P-35ESect-8.2 P-36ESect-8.2 P-37ESect-8.2 P-38ESect-8.2 P-39ESect-8.3 P-1ESect-8.3 P-2ESect-8.3 P-3ESect-8.3 P-4ESect-8.3 P-5ESect-8.3 P-6ESect-8.3 P-7ESect-8.3 P-8ESect-8.3 P-9ESect-8.3 P-10ESect-8.3 P-11ESect-8.3 P-12ESect-8.3 P-13ESect-8.3 P-14ESect-8.3 P-15ESect-8.3 P-16ESect-8.3 P-17ESect-8.3 P-18ESect-8.3 P-19ESect-8.3 P-20ESect-8.3 P-21ESect-8.3 P-22ESect-8.3 P-23ESect-8.3 P-24ESect-8.3 P-25ESect-8.3 P-26ESect-8.3 P-27ESect-8.3 P-28ESect-8.3 P-29ESect-8.3 P-30ESect-8.3 P-31ESect-8.3 P-32ESect-8.3 P-33ESect-8.3 P-34ESect-8.3 P-35ESect-8.3 P-36ESect-8.3 P-37ESect-8.3 P-38ESect-8.3 P-39ESect-8.3 P-40ESect-8.3 P-41ESect-8.3 P-42ESect-8.3 P-43ESect-8.3 P-44ESect-8.3 P-45ESect-8.3 P-46ESect-8.3 P-47ESect-8.3 P-48ESect-8.3 P-49ESect-8.3 P-50ESect-8.3 P-51ESect-8.4 P-1ESect-8.4 P-2ESect-8.4 P-3ESect-8.4 P-4ESect-8.4 P-5ESect-8.4 P-6ESect-8.4 P-7ESect-8.4 P-8ESect-8.4 P-9ESect-8.4 P-10ESect-8.4 P-11ESect-8.4 P-12ESect-8.4 P-13ESect-8.4 P-14ESect-8.4 P-15ESect-8.4 P-16ESect-8.4 P-17ESect-8.4 P-18ESect-8.4 P-19ESect-8.4 P-20ESect-8.4 P-21ESect-8.4 P-22ESect-8.4 P-23ESect-8.5 P-1ESect-8.5 P-2ESect-8.5 P-3ESect-8.5 P-4ESect-8.5 P-5ESect-8.5 P-6ESect-8.5 P-7ESect-8.5 P-8ESect-8.5 P-9ESect-8.5 P-10ESect-8.5 P-11ESect-8.5 P-12ESect-8.5 P-13ESect-8.5 P-14ESect-8.5 P-15ESect-8.5 P-16ESect-8.5 P-17ESect-8.5 P-18ESect-8.5 P-19ESect-8.5 P-20ESect-8.5 P-21ECh-8 P-1RCCCh-8 P-2RCCCh-8 P-3RCCCh-8 P-4RCCCh-8 P-5RCCCh-8 P-6RCCCh-8 P-7RCCCh-8 P-8RCCCh-8 P-9RCCCh-8 P-10RCCCh-8 P-1RECh-8 P-2RECh-8 P-3RECh-8 P-4RECh-8 P-5RECh-8 P-6RECh-8 P-7RECh-8 P-8RECh-8 P-9RECh-8 P-10RECh-8 P-11RECh-8 P-12RECh-8 P-13RECh-8 P-14RECh-8 P-15RECh-8 P-16RECh-8 P-17RECh-8 P-18RECh-8 P-19RECh-8 P-20RECh-8 P-21RECh-8 P-22RECh-8 P-23RECh-8 P-1PCh-8 P-2PCh-8 P-3PCh-8 P-4PCh-8 P-5PCh-8 P-6PCh-8 P-7PCh-8 P-8PCh-8 P-9PCh-8 P-10PCh-8 P-11PCh-8 P-12PCh-8 P-13P

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