we can show the equation validity with an example:
N-3 years
r-6% annually
y-100
Hence the formula so provided for calculation of present value of continuous income has been proved with the above example.
Show that the present value of a continuous income flow lasting for N years at the...
Find the present value of a continuous stream of income over 2 years when the rate of income is constant at $35,000 per year and the interest rate is 4%.
Suppose that a printing firm considers its production as a continuous income stream. If the annual rate of flow at time t is given by f(t) = 93.9e−0.8(t + 3) in thousands of dollars per year, and if money is worth 6% compounded continuously, find the present value and future value (in dollars) of the presses over the next 10 years. (Round your answers to the nearest dollar.) present value$ future value$
The income from an established chain of laundromats is a continuous stream with its annual rate of flow at time t given by f(t) = 120,000 (dollars per year). If money is worth 3% compounded continuously, find the present value and future value of this chain over the next 5 years. (Round your answers to the nearest dollar.) present value $ future value $
(b) A continuous stream of income is being produced at the rate of 100t + 5000 dollars per year at time t, and the interest rate is 5%. Find the present value of the income generated during the next 5 years.
What is the present value of $3,500 per year for 8 years discounted back to the present at 9 percent? The present value of $3,500 per year for 8 years discounted back to the present at 9 percent is $ (Round to the nearest cent.)
Calculate the present worth of a 25-year geometric cash flow progression, where the cash flow value increases at a rate of 4% per year. Assume the value in the first year is $2,500 and the hurdle rate is 10% per year. Express your answer in terms of dollars, rounded to the nearest dollar (e.g., 1234).
The present value of the following cash flow stream is $7,200 when discounted at 10 percent annually. What is the value of the missing cash flow at year 2? Year Cash Flow 1 3,100 2 3 2,200 4 1,500 A. $2,500 B. $2,250 C. $2,062 D. $1,952 E. $1,842 Please help urgently. No work needs to be shown.
Present Value for Various Compounding Periods Find the present value of $500 due in the future under each of the following conditions. Do not round intermediate calculations. Round your answers to the nearest cent. 4% nominal rate, semiannual compounding, discounted back 5 years $ 4% nominal rate, quarterly compounding, discounted back 5 years $ 4% nominal rate, monthly compounding, discounted back 1 year $
Present Value for Various Compounding Periods Find the present value of $400 due in the future under each of the following conditions. Do not round intermediate calculations. Round your answers to the nearest cent. 4% nominal rate, semiannual compounding, discounted back 5 years $ _______ 4% nominal rate, quarterly compounding, discounted back 5 years $________ 4% nominal rate, monthly compounding, discounted back 1 year $________
(Show computations) 1. Find the present value of $2,000,000 to be received in 10 years at 10%. 2. Find the present value of $50,000 per year for 20 years at 5%. 3. Find the present value of $50,000 per year for 20 years at 6%.