Find the accumulated present value of an investment over a 1
Find the accumulated present value of an investment over a 11-year period if there is a continuous money flow of $2900 per year and the current interest rate is 10%, compounded continuously.
Solution
present amount, A = P(1+r/100)^t P = 2900, r = 10, t = 11 A = 2900(1+10/100)^11 A = 2900(11/10)^11 A = $ 8274 (approx)