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Calculus: Early Transcendentals
8th Edition
ISBN: 9781285741550
Author: James Stewart
Publisher: Cengage Learning
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
Transcribed Image Text:You just found out that you will be eligible to receive a $14-million dollar inheritance, 5 years from now. If interest is 6.1 % with interest compounded continuously, what
is the present value of the inheritance?
Select the corect formula to calculate the present value.
O A.
Po = 14,000,000(1 + 0.061)
O B. P,= 14,000,000 e (0.061)(5)
-5
OC. P,=14.000,000(1+ 0.061)
Cric O -(0.061)(5)
O D. P,=14,000,000 e
O E. None of the above.
Lo
Click to select your answer.
工
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- Use the present value formula to determine the amount to be invested now, or the present value needed. The desired accumulated amount is $140,000 after 3 years invested in an account with 5% interest compounded quarterly The amount to be invested now, or the present value needed, is S (Round to the nearest cent as needed.)arrow_forwardYou deposited $5,000 in a bank t years ago. Your current account balance is $8,200, and the bank compounded interest monthly at an interest rate of 3.5%. How long ago did you deposit the money? That is, find t. Round your answer to the nearest tenth of a year.arrow_forwardKevin wants to save money to purchase a car. He starts saving $1,415 quarterly in an account that earns 2.1% compounded quarterly. How much will he have saved in 3 years? Round your answer to two decimal places.arrow_forward
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