Math: Present Value

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Please help me with the following problem. I'm not able to get the right answer! Please provide a full solution that I can follow... thank you.

How much money should be invested now at 7% to obtain $9,000 in 5 years if interest is compounded:

a) Quarterly
b) Continuously

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My work:

a)
B = 9000(1 + (0.07/4)^20
B = 12 733

b)
B(5) = 9000e^0.07
B(5) = 0652.57

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Textbook answer:
a) $6 361.42
b) $6 342.19

  • Math: Present Value -

    Quarterly:
    For an initial balance B, you want B*(1+.07/4)^20 = 9000.
    (1+.07/4)^20 = 1.0175^20 = 1.414778
    And 9000./1.414778 = 6361.42 QED

    Continuously, you want B*e^(.07*5) = 9000.
    e^(.35) = 1.4190675 -- take it from here.

  • Math: Present Value -

    what is the present value of nine annual cash payments of 4 000 to be paid at the end of each year using an interest rate of 6%.

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