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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.

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14y ago

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