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I know that the answer is 17,402.48 for exercise 2.33 shown in the picture. what i need help with is showing the work for it. i cant figure out how to get that answer. We where told to use example 2.32 in the picture also as a hint. Any help getting this problem understood would be great help.

Example (2.32) A 20-year continuous stream of payments consists of payments at a rate O 3,000 per year for the first 10 vears, then at a rate of 2,000 per year from t = 10 to t=20. At an interest rate of 6% convertible monthly, what is the present value of this payment stream? Solution. The payment stream can be broken into two parts: continuous payments at a rate of 2,000 per year for the full 20-year period, and continuous payments of 1,000 per year for just the first 10 years. The total present value is: 2,000.za +1,000-ta = 2,000. 1- In order to evaluate this expression, we need values for v and 8: 0.1-110 v= 1 1 0.9419 1+i (12) ) 12 0.06)2 * 1.06168 = 0.9419 12) 8 = ln (1 + i) = ln (1.06168) = 0.05985 Using these values, the present value of this payment stream is: 2000 1 - 120000 1-1 2000 1-0.941920 1-0.941910 4000 $ +, S T .00 0.05985 , 0,05985 = 2,000 x 11.6607 +1,000 x 7.5249 = 30,846.44 Exercise (2.33) An account pays interest at a continuously compounded rate of 0.05 per year. Continuous deposits are made to the account at a rate of 1,000 per year for 6 years, and then at a rate of 2,000 per year for the next 4 years. What is the account balance at the end of 10 years? Answer: 17,402.48

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