Question 201350: Find the present value of $15000 due 5 years later at 6.1% compounded continuously. not sure how to set this up due the compounded continuously. can someone help please
thanks
Answer by Alan3354(69443)   (Show Source):
You can put this solution on YOUR website! Find the present value of $15000 due 5 years later at 6.1% compounded continuously. not sure how to set this up due the compounded continuously. can someone help please
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Do you mean $15000 now, compounded for 5 years? If so,
For continuous compounding, use
FV = AMT*e^(rt) (e = base of natural logs)
FV = 15000*e^(0.061*5) = 15000*e^0.305
= ~ 15000*1.356625
= ~ $20,349.38
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