SOLUTION: Find the present value of $35000 due 11 years later at 8.1%, compounded continuously.

Question 957467: Find the present value of $35000 due 11 years later at 8.1%, compounded continuously.
Answer by lwsshak3(11628) (Show Source): You can put this solution on YOUR website!
Find the present value of $35000 due 11 years later at 8.1%, compounded continuously.
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Formula for continuous compounding: A=Pe^rt, P=initial investment, r=interest rate, t=number of years, A=amt after t-years
For given problem:
A=35000
r=.081
t=11
35000=Pe^(.081*11)=e^0.891
P=35000/e^0.891≈14359
present value of $35000 due 11 years later at 8.1%, compounded continuously: $14,359
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