Question: Solving A = Pe for P, we obtain P = Ae which is the present value of the amount A due in t years


Solving A = Pe" for P, we obtain P = Ae" " 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 (A) Graph P = 3,000e- 0.0 Osts 50 (B) Find lim, 3,000e- 0.091 [Guess, using part (A) ] [Conclusion: The longer the time until the amount A is due, the smaller is its present value, as we would expect.] (A) Choose the correct graph of P = 3,000e Ost= 50 O A. O B. O C. O D. 3000- AP 3000- 3000- AP 3000- 50 50 50 50
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