A retiree is paid $1200 per month by an annuity. If the income is invested in an account that earns 9% interest compounded continuously, what is the future value of the income after ten years? (Round your answer to two decimal places.)
$233,536.47
The winner of a lottery is awarded $7,000,000 to be paid in annual installments of $350,000 for 20 years. Alternatively, the winner can accept a "cash value" a one-time payment of $3,150,000. The winner estimates he can earn 8% annually on the winnings. What is the present value of the installment plan? (Round your answer to two decimal places.)
$340,613.52
An heiress receives an income stream from a will at a rate of f(t) = $30,000e^(0.023t) dollars per year. She invests this income and earns 4.9% interest (compounded continuously). (Round your answers to two decimal places.)
(a) What is the future value of the income after ten years?
$435,387.64
(b) Compute the present value of the income over a ten-year period.
$266,715.18