Question:

Suppose that a large farm with a known reservoir of gas

Last updated: 7/26/2022

Suppose that a large farm with a known reservoir of gas

Suppose that a large farm with a known reservoir of gas beneath the ground sells the gas rights to a company for a guaranteed payment at a rate of 1,500e^0.03t dollars per year. Find the present value of this perpetual stream of income, assuming an interest rate of 7% compounded continuously.