To get 50 after 3 years at 9 compounded continuously The pre

To get $50 after 3 years at 9% compounded continuously The present value of $50 is (Round to the nearest cent as needed.)

Solution

present value P=A/e^rt

t =3¹/₄ =3.25 years , r =9%=0.09,A=50$

present value P=50/e^0.09*3.25

present value P=50/1.33977

present value P=37.32

present value is 37.32 $