What is the Present Value of a cash payment of $38,666 received 14 years from today...

What is the Present Value of a cash payment of $38,666 received 14 years from today which is discounted at a continuously compounded 1.5% rate of interest?

Expert Solution

Future Value = $38,666
Interest Rate = 1.50%
Time Period = 14 years

Present Value = Future Value * exp(-Interest Rate * Time Period)
Present Value = $38,666 * exp(- 0.0150 * 14)
Present Value = $38,666 * exp(-0.21)
Present Value = $38,666 * 0.810584
Present Value = $31,342.04

jeff jeffy answered 2 years ago

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