Find the accumulated present value of an investment over a 6 year period if there is a continuous money flow of $9,000 per year and the interest rate is 1.6% compounded continuously.

robbbiehu

robbbiehu

Answered question

2022-10-30

Find the accumulated present value of an investment over a 6 year period if there is a continuous money flow of $9,000 per year and the interest rate is 1.6% compounded continuously.

Answer & Explanation

Laci Conrad

Laci Conrad

Beginner2022-10-31Added 17 answers

Solution: Accumulated present value is given as
P V = 0 t R ( t ) e k t d t P V = 0 6 9000 e 0.016 t d t P V = 9000 0.016 e 0.016 t ] 0 6 P V = 56250 ( 1 e 0.096 ) P V = 51488.991 P V 51489

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