You are planning to buy a house in 8 years. You would like to be able to make a down payment of $67,800. The stated interest rate is 13% (APR). If interest is compounded continuously, how much will you need to invest today in order to make the down payment?

You are planning to buy a house in 8 years. You would like to be able to make a down payment of $67,800. The stated interest rate is 13% (APR). If interest is compounded continuously, how much will you need to invest today in order to make the down payment?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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Question

You are planning to buy a house in 8 years. You would like to be able to make a down payment of $67,800. The stated
interest rate is 13% (APR). If interest is compounded continuously, how much will you need to invest today in order to
make the down payment?

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