1)Find the a) present and b) future values of an income stream of 4000 dollars a year ...

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1)Find the a) present and b) future values of an income stream of 4000 dollars a year, for a period of 5 years, if the continuous interest rate is 6 percent.
present value = dollars
future value = dollars


2) a) A bank account earns 9 percent interest compounded continuously. At what (constant, continuous) rate must a parent deposit money into such an account in order to save 150000 dollars in 9 years for a child's college expenses?
rate = (dollars/year)
b) If the parent decides instead to deposit a lump sum now in order to attain the goal of 150000 dollars in 9 years, how much must be deposited now?
amount = (dollars)

    • 8 years ago
    (a) For a continuous payment annuity, the PV is ...
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