What is the present...
16. What is the present value of $2,000 to be received after 10 years, given an annual
discount rate of 12% discounted continuously?
$_____________________
17. Discounting continuously, what is the present value of $2,000, received after 10
years, given an annual discount rate of 10%?
$_____________________
16. What is the present value of $2,000 to be received after 10 years, given an annual
discount rate of 12% discounted continuously?
$602.38
PV = FVT[ e-RT]
PV = $2,000 [ e-0.12 x 10]
PV = $2,000 [ e-1.2]
PV = $2,000 [0.3011918]
PV = $602.38
17. Discounting continuously, what is the present value of $2,000, received after 10
years, given an annual discount rate of 10%?
$735.75
PV = FVT[ e-RT]
PV = $2,000 [ e-0.10 x 10]
PV = $2,000 [ e-1.0]
PV = $2,000 [0.367877]
PV = $735.75