Find the capital value of the stream

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Reference no: EM131798862

Question: Suppose a continuous income stream has an annual rate of flow f(t) = 85e-0.01t, in thousands of dollars per year, and the current interest rate is 7% compounded continuously.

(a) Find the total income over the next 12 years.

(b) Find the present value over the next 12 years.

(c) Find the capital value of the stream.

Reference no: EM131798862

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