Question: The continuously compounded interest rate is 1 2 % . a . You invest $ 1 , 0 0 0 at this rate. What is
The continuously compounded interest rate is
a You invest $ at this rate. What is the investment worth after five years? Do not round intermediate calculations. Round your answer to decimal places.
Future value
b What is the PV of $ million to be received in eight years? Enter your answer in dollars, not millions of dollars. Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.
Present value
c What is the PV of a continuous stream of cash flows, amounting to $ per year, starting immediately and continuing for years? Do not round intermediate calculations. Round your answer to decimal places.
Present value
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
