What was the future value of the income from the well

Reference no: EM131004311

Revenue from gas wells that have been in produc- tion for at least 5 years tends to follow a decreasing geometric gradient. One particular rights holder received royalties of $4000 per year for years 1 through 6, but beginning in year 7, income de- creased by 15% per year through year 14. What was the future value (year 14) of the income from the well, if all of the income was invested at 10% per year?

Reference no: EM131004311

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