Question 1: Find the present and future values of an income stream of $12,000 a year for 20 years. The interest rate is 6%, compounded continuously.
Question 2: A small business expects an income stream of $5000 per year for a four-year period.
A. Find the present value of the business if the annual interest rate, compounded continuously, is
i. 3% ii. 10%
B. In each case, find the value of the business at the end of the four-year period