The continuously compounded interest rate is 8%. a. You invest $1,030 at this rate. What is...

 

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The continuously compounded interest rate is 8%. a. You invest $1,030 at this rate. What is the investment worth after eight years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What is the PV of $5.3 million to be received in eleven years? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount. Enter your answer in dollars, not millions of dollars.) c. What is the PV of a continuous stream of cash flows, amounting to $2,030 per year, starting immediately and continuing for 18 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) a. Future value b. Present value c. Present value The continuously compounded interest rate is 8%. a. You invest $1,030 at this rate. What is the investment worth after eight years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What is the PV of $5.3 million to be received in eleven years? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount. Enter your answer in dollars, not millions of dollars.) c. What is the PV of a continuous stream of cash flows, amounting to $2,030 per year, starting immediately and continuing for 18 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) a. Future value b. Present value c. Present value

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a To calculate the future value of an investment we can use the formula for continuous compounding F... View the full answer