document.write( "Question 1110088: find the presented value of $40,000 due in 4 years at the given rate of interest 5%/year compounded continuously \n" ); document.write( "

Algebra.Com's Answer #725096 by jorel1380(3719) $\"\"$ $\"About$

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40000=PV x e^.05t, where PV is present value and t is time, in years. Then:
\n" ); document.write( "40000=PV x e^.2
\n" ); document.write( "ln 40000=ln PV + ln e^.2=ln PV + .2 ln e= ln PV + .2
\n" ); document.write( "ln PV=10.4
\n" ); document.write( "PV=32749.23 as the present value of the amount
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