I got a lot of wrong answers...

Can you kindly explain the right answer?

In lecture, Professor Gruber explained discrete compounding interest. Interest can also be compounded continuously. Here we explain the difference. Professor Gruber calculated future value as FV = P(1 + r), where P is the principal, r is the interest rate, and t is the term of the contract (often in years). This formula can be generalized to FV = P(1 + r/m)", where m is the number of compounding periods per year (in lecture, this was 1). That is, after every compounding period, more interest accrues on both the principle and the previous accrued interest. This is discrete compounding. Suppose that m becomes large. For example, the interest rate could be 10% per year, but compounded each minute. Future value rises as m increases, but it rises at a diminishing rate. It turns out that as m goes to infinity, future value is described by an exponential function, FV = Pert, where e is the base of the natural logarithm. This is continuous compounding. Problem PS9.1.1a 0/4 points (graded) You are planning to invest in fine wine. Each case costs $100 (at time 0), and you know from experience that the (future) value of a case of wine held for t years is 100vt for t 2 1. (Suppose that the value is 100 for 0