Question

**a.** Compute the future value of $1,900
continuously compounded for 7 years at an annual percentage rate of
8 percent. **(Do not round intermediate calculations and
round your answer to 2 decimal places, e.g., 32.16.)**

Future value
$

**b.** Compute the future value of $1,900 continuously
compounded for 5 years at an annual percentage rate of 11 percent.
**(Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)**

Future value
$

**c.** Compute the future value of $1,900 continuously
compounded for 8 years at an annual percentage rate of 5 percent.
**(Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)**

Future value
$

**d.** Compute the future value of $1,900 continuously
compounded for 5 years at an annual percentage rate of 7 percent.
**(Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)**

Answer #1

**Solution a:**

Present value (PV) = $1,900

Interest rate (r) = 8%

Time (T) = 7 years

Future value (FV) = PV * e^rt = $1,900 * (2.71828)^(7*0.08)

= $1,900 * 1.75067

= $3,326.28

**Solution b:**

Present value (PV) = $1,900

Interest rate (r) = 11%

Time (T) = 5 years

Future value (FV) = PV * e^rt = $1,900 * (2.71828)^(5*0.11)

= $1,900 * 1.73325

= $3,293.18

**Solution c:**

Present value (PV) = $1,900

Interest rate (r) = 5%

Time (T) = 8 years

Future value (FV) = PV * e^rt = $1,900 * (2.71828)^(8*0.05)

= $1,900 * 1.49182

= $2,834.47

**Solution d:**

Present value (PV) = $1,900

Interest rate (r) = 7%

Time (T) = 5 years

Future value (FV) = PV * e^rt = $1,900 * (2.71828)^(5*0.07)

= $1,900 * 1.41907

= $2,696.23

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round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.) b. Compute the future value of $1,900
continuously compounded for 5 years at an annual percentage rate of
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answer to 2 decimal places, e.g., 32.16.) c. Compute the future
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PLEASE SHOW THE WORK

Problem 4-48 Calculating Present Values A 4-year annuity of
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