Question
Solving A = Pe^rt for P, we obtain P = Ae^rt which is the present value of the amount A due in t years if
Solving A = Pe^rt for P, we obtain P = Ae^¯rt which is the present value of the amount A due in t years if money earns interest at an annual nominal rate r compounded continuously. For the function P = 11,000e-0.04t, in how many years will the $11,000 be due in order for its present value to be $9,000?
Solving A = Pe^rt for P, we obtain P = Ae^¯rt which is the present value of the amount A due in t years if money earns interest at an annual nominal rate r compounded continuously. For the function P = 11,000e-0.04t, in how many years will the $11,000 be due in order for its present value to be $9,000?
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Hospitality Financial Accounting
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Agnes L.
2nd Edition
9780470598092, 470083603, 978-0470083604
