1. **State the problem:** Calculate the present value (PV) of an income stream paying 1000 at the end of each month for 3 years with an interest rate of 13% compounded monthly. 2. **Identify variables:** - Payment per period, $PMT = 1000$ - Number of periods, $n = 3 \text{ years} \times 12 \text{ months/year} = 36$ - Monthly interest rate, $i = \frac{13\%}{12} = \frac{0.13}{12} \approx 0.0108333$ 3. **Formula for present value of an ordinary annuity:** $$ PV = PMT \times \frac{1 - (1 + i)^{-n}}{i} $$ 4. **Calculate $ (1 + i)^{-n} $:** $$ (1 + 0.0108333)^{-36} \approx (1.0108333)^{-36} \approx 0.6852 $$ 5. **Calculate present value:** $$ PV = 1000 \times \frac{1 - 0.6852}{0.0108333} = 1000 \times \frac{0.3148}{0.0108333} \approx 1000 \times 29.05 = 29050 $$ 6. **Conclusion:** The value today of this income stream is approximately $29050$.