A Continuous Income Stream Has an Annual Rate of Flow

question 136

Multiple Choice

A continuous income stream has an annual rate of flow at time t given by (dollars per year) . Find the present value of this income stream for the next 9 years, if the money is worth 4% compounded continuously. Round to the nearest dollar. ​

• A)$47,664
• B)$107,767
• C)$178,262
• D)$147,471
• E)$81,028

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Definitions:

Economists Employment

The sector or roles within the economy where individuals specializing in economic theories, principles, and models find work opportunities.

Inelastic Supply

A situation where the quantity supplied of a good does not significantly change in response to changes in its price.

Labor Resources

Human workforce available for the production of goods and services.

Short Run

A time period in which at least one factor of production is fixed, limiting the ability of a business to adjust fully to market changes.