Question

Find the value of an income stream after 8 years if the rate of flow is estimated to be $240,000 annually and the income is deposited at a rate of 6 percent compounded continuously. Round intermediate answers to eight decimal places and final answer to two decimal places.

Answer 1

Year	Future value	Interest	Effective rate	Calculation(Formula FV=PV*(1+Rate/Year)n
1	254,400	14,400	6%	240000*(1+.06/8)1
2	269,664	29,664	12.36%	254,400*(1+.06/8)2
3	285,843.84	45,843.84	19.1016%	269,664*(1+.06/8)3
4	302,994.47	62,994.47	26.2477%	285,843.84*(1+.06/8)4
5	321,174.14	81,174.14	33.8226%	302,994.47*(1+.06/8)5
6	340,444.59	100,444.59	41.8519%	321,174.14*(1+.06/8)6
7	360,871.26	120,871.26	50.363%	340,444.59*(1+.06/8)7
8	382,523.54	142,523.54	59.3848%	360,871.26*(1+.06/8)8