Suppose that a continuous income stream of 8000 dollars per year is invested at 7 percent annual interest, compounded continuously for 15 years. find the present and future values of that income stream
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The formula for continuous compounding is: \[ A = P \times e^{rt} \] where: A = the amount of money accumulated after n years, including interest. P = the principal amount (initial amount of money). r = annual interest rate (in decimal). t = time the money is Show more…
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