Find the total value TV of the given income stream and also find its present value...

Find the total value TV of the given income stream and also find its present value PV (at the beginning of the given interval) using the given interest rate. (Round your answers to the nearest cent.) R(t) = 54,000, 0 ≤ t ≤ 12, at 4%

TV = $

PV = $

Solutions

Expert Solution

PART(a):

The total value TV of the income stream is given by,

integrate wrt t,

rounding off to nearest cent,

PART(b):

The present value PV of the income stream is given by,

after integrating,

rounding off to nearest cent,

I hope this answer helps,
Thanks,
Keep posting questions.

milcah answered 1 year ago

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