In: Finance
What is the Present Value of a cash payment of $25,769 received 27 years from today which is discounted at a continuously compounded 2.2% rate of interest?
PV = FV * e^(-rt)
PV = 25,769 * e^(-0.022 * 27)
PV = 25,769 * e^(-0.594)
PV = 25,769 * 0.5521144043
PV = $14,227.4360844067