Register
What is the present value of $1,000,000 in 40 years at 3% compounded continuously?
13.0k views
0 votes
What is the present value of $1,000,000 in 40 years at 3% compounded continuously?

User Yenn
by
7.8k points

1 Answer

6 votes
Formula for continuous interest is A = Pe^rt

The A is the amount after interest has been applied, P is what you start with.
r is the rate and t is time in years

1000000 = Pe^(.03*40), now solve for P

P = $301,194.21
User Dobes Vandermeer
by
7.9k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.5m questions

12.2m answers

Other Questions

How do you can you solve this problem 37 + y = 87; y =
What is .725 as a fraction
How do you estimate of 4 5/8 X 1/3
A bathtub is being filled with water. After 3 minutes 4/5 of the tub is full. Assuming the rate is constant, how much longer will it take to fill the tub?
i have a field 60m long and 110 wide going to be paved i ordered 660000000cm cubed of cement  how thick must the cement be to cover field
Link Copied!