Gia F.

asked • 04/04/23

calculus word problem!!!

You are offered and investment opportunity that will produce continuous income at a constant rate of 1000 dollars/year for 20 years. If the annual interest rate is 8%, continuously compounded, what is the present value of this income stream?

Patrick F.

tutor
My answer is for 1000 payments at the end of each year. But maybe I misunderstood the question. If you really mean continuous payments (what does that even mean: continuous payments?), you would integrate 1000*e^-.08t dt from 0 to 20
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04/05/23

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Patrick F. answered • 04/05/23

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