Answer:
value of Johnny's investments today, at age 50, is approximately 18.39 dollars.....................
Explanation:
To find the present value of Johnny's investments, you will need to use the formula for continuous compound interest:
PV = A / (1 + r)^t
where PV is the present value, A is the final amount, r is the annual interest rate, and t is the number of years.
In this case, the final amount is 50 dollars, the annual interest rate is 6.75 percent, and the number of years is 30 (since Johnny is now 50 years old and he invested the money at age 20). Plugging these values into the formula, we get:
PV = 50 / (1 + 0.0675)^30
Solving this equation gives a present value of approximately 18.39 dollars. This means that the value of Johnny's investments today, at age 50, is approximately 18.39 dollars, given the original investment amount and the interest rate.
It is important to note that this calculation assumes that the interest is compounded continuously, which means that the interest is compounded infinitely often over the course of the year. This results in a slightly higher present value than if the interest were compounded annually or quarterly.