Problema Solution
find the present value of $11,500 in 6 1/2 years if money earns 6.5% compounded continuously.
Answer provided by our tutors
P = principal amount (the initial amount you borrow or deposit)
r = annual rate of interest (as a decimal)
t = number of years the amount is deposited or borrowed for.
A = amount of money accumulated after n years, including interest.
n = number of times the interest is compounded per year
a=p(1+r/n)^nt
11500I1+0.065)^6.5
=17316.90566