Question: use the following method If A dollars are to be received after t years of continuous compounding with a yearly rate of interest r per
use the following method If A dollars are to be received after t years of continuous compounding with a yearly rate of interest r per year, the present value is given by the following formula. Upper P equals Upper A e Superscript negative rt Part 2 Substitute the values for A, r, and t into the formula. Recall that r should be entered as a decimal, and 7.9%equals0.079. Pequals$9 comma 000e Superscript negative 0.079 left parenthesis 5 right parenthesis Part 3 Next, simplify the exponent on the right side. Pequals$9 comma 000e Superscript negative 0.395 Part 4 Finally, calculate P. Pequals$6 comma 063.12 Part 5 Therefore, the present value of the deposit is $6 comma 063.12
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