Question

Your rich uncle bequests to you a continuous, constant income stream of $1000 per year for the next 5 years. The terms of the bequest require that this income stream be paid continuously into a specific savings account that will not be available to you for 5 years. This account earns 6% interest, compounded continuously. what is the present value of the bequest? How much money would the bequest be worth (including all interest accrued) after 5 years? You discover that a bank is offering 6.5% interest compounded continuously on a certificate of deposit (CD) that matures in 5 years?

Answer 1

oh sorry, I'll get started

Answer 2

ok thanks!

Answer 3

for the amount the bequest is worth after 5 years, $6007.66. for the amount put into the CD, $4340.70. As for the current value, it doesn't say how many years its been, there's no way of knowing from that question