In: Finance
If interest rate is compounded continously,
Present Value of a future cashflow is given by
PV =
where FV is the future value = 350,000
e is the exponential function nearly equal to 2.73
r is interest rate = 10% or 0.1
t is no. of years = 15
Hence, PV =
= 78095.556
Therefore, option (e) is correct.