Step 1 :We are given a continuous income stream with rate \(R(t) = 0.07t + 400\), over a time period \(T = 10\), and an interest rate \(k = 4\%\) compounded continuously. We are asked to find the accumulated present value of this income stream.
Step 2 :The formula for the accumulated present value of a continuous income stream is given by \(PV = \int_0^T R(t) e^{-kt} dt\).
Step 3 :Substituting the given values into the formula, we get \(PV = \int_0^{10} (0.07t + 400) e^{-0.04t} dt\).
Step 4 :Solving this integral, we find that the present value \(PV\) is approximately 3299.49.
Step 5 :This means that the present value of the continuous income stream, discounted at a continuous compounding rate of 4%, is approximately $3299.49.
Step 6 :Final Answer: \(\boxed{3299.49}\)