The amount of the three-year future value of this income stream is approximately $47,034.41.
The formula is used to derive to total sum of investment to be attained with a present value invested at a particular interest rate.
Given data
Pv = 40,000
i - 5.4% compounded continuously
t = 3
Future value = Present value *e^(i * t)
Future value = $40,000 * e^(5.4%*3)
Future value = $40,000 * e^(0.162)
Future value = $40,000 * 1.17586024132
Future value = $47,034.4097
Future value = $47,034.41
In conclusion, the amount of the three-year future value of this income stream is approximately $47,034.41.
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