Find the total value of the given income stream and also find its future value (at the end of the given interval) using the given interest rate. $R ( t ) = 70,000$ , $0 \leq t \leq 15$ , at 6%

A) $T V = \$ 1,050,000$ , $F V = \$ 1,702,870.30$
B) $T V = \$ 1,050,000$ , $F V = \$ 4,036,203.63$
C) $T V = \$ 1,050,000$ , $F V = \$ 2,869,536.96$
D) $T V = \$ 2,100,000$ , $F V = \$ 102,172.22$
E) $T V = \$ 525,000$ , $F V = \$ 1,640,997.94$

Question

Find the total value of the given income stream and also find its future value (at the end of the given interval) using the given interest rate.   $R ( t ) = 70,000$ , $0 \leq t \leq 15$ , at 6%
 
A) $T V = \$ 1,050,000$ , $F V = \$ 1,702,870.30$
B) $T V = \$ 1,050,000$ , $F V = \$ 4,036,203.63$
C) $T V = \$ 1,050,000$ , $F V = \$ 2,869,536.96$
D) $T V = \$ 2,100,000$ , $F V = \$ 102,172.22$
E) $T V = \$ 525,000$ , $F V = \$ 1,640,997.94$

Quizplus · Accepted Answer

The total value (TV) of the income stream is calculated by multiplying the annual income by the number of years: $TV = 70,000 \times 15 = 1,050,000$. The future value (FV) is not directly provided, but option A's future value is the only one that makes sense given the context of a 6% annual interest rate over 15 years, indicating a compound interest calculation was used.

Find the Total Value of the Given Income Stream and Also