Saturday, November 30, 2013

Find the present value of this investment if the prevailing interest rate is 8%? and Welthecon Investment Managers

Find the present value of this investment if the prevailing interest rate is 8%?



Suppose and investment is expected to generate income at the rate of R(t)=200,000 dollars/year for the next 6 years. Find the present value of this investment if the prevailing interest rate is 8%/ year compunded continuously. Round your answer to the nearest dollar. Please show work.


Investment best answer:

Answer by Ashlyn N
well you times them all together, so.

200,000x 6x .08 = 96,000

correct me if im wrong, but this is how i was taught


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