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Find the present value of $26997.18 due in 3 yr at an interest rate of 10%/year compounded continuously.

$?

  • math -

    26997.18 = PV(1.10)^10
    26997.18/(1.10)^10 = PV
    26997.18/2.59374 = PV
    10408.59 =PV

  • math -

    again, I disagree with angela' s answer

    PV = 26997.18 e^(-.1(3))
    = 26997.18 e^-.3
    = 20,000.00

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