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Determine the present value of 5000 to be received 4 years from now at the continuously discounted rate of 8 percent?
Wiki User
∙ 13y ago
Determine the present value of $5,000 to be received 4 years from now at the continuously discounted rate of 8 percent.
a) $6,886
b) $3,631
c) $4,616
d) None of the above
I think the answer is D, none of the above, because 8% deducted annually from a starting point of 5000 would leave you with 3582 after 4 years.
Wiki User
∙ 13y ago
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