math algebra

posted by caroline

A tax free municipal bond pays 4.75% compounded continuously. What is the value of a $2,000 bond after 30 years? Round your answer to the nearest cent.

[Hint- A=P e^rt where P= present(initial) value, A= future value, r= annual rate, and t= number of years]

P.S.The rt is an exponent to e

  1. Henry

    A = P*e^rt.

    P = $2,000

    rt = 0.0475/yr. * 30yrs. = 1.425.

    A = ?.

Respond to this Question

First Name

Your Answer

Similar Questions

  1. Pre-Cal

    A website is offering a savings account that pays 33% compounded continuously. How much interest would a deposit of $3,000 earn over 15 years?
  2. math

    Find the present value, using the present value formula and a calculator. (Round your answer to the nearest cent.) Achieve $225,500 at 8.95% compounded continuously for 8 years, 155 days.
  3. algebra

    Find the future value, using the future value formula and a calculator. (Round your answer to the nearest cent.) $990 at 5.5% compounded quarterly for 3 years Find the present value, using the present value formula and a calculator. …
  4. Math

    Find the present value, using the present value formula and a calculator. (Round your answer to the nearest cent.) Achieve $225,500 at 8.65% compounded continuously for 8 years, 125 days.
  5. Algebra

    Find the present value, using the present value formula and a calculator. (Round your answer to the nearest cent.) Achieve $225,500 at 8.55% compounded continuously for 8 years, 125 days.
  6. algebra

    Find the present value, using the present value formula and a calculator. (Round your answer to the nearest cent.) Achieve $225,500 at 8.55% compounded continuously for 8 years, 125 days.
  7. FINANCE

    12. Bond Quotes Consider the following bond quote: a municipal bond quoted at 101.25. If the municipal bond has a par value of $5,000, what is the price of the bond in dollars?
  8. math

    Find the present value, using the present value formula. (Round your answer to the nearest cent.) Achieve $225,500 at 8.45% compounded continuously for 8 years, 145 days.
  9. calculus

    First, the bond pays 96 + 7 t per year for 10 years. Second, the interest rate is 5.25% compounded continuously. Round your answer to the nearest cent. Find the present value?
  10. math algebra

    A tax free municipal bond pays 4.75% compounded continuously. What is the value of a $2,000 bond after 30 years?

More Similar Questions