# Math Help - Business Caluculus

A promissory not will pay $50,000 at maturity 5 years from now. The note has an interest rate of 6.4% compounded continuously... 1. What is the note worth right now? 2. You bought the note and cashed it after 5 years. How much interest did you earn? I set up the equation as 50,000=Ce^.064*0 but how do I solve that and then I have no idea how do do the second part of the question...PLEASE HELP! 2. Originally Posted by ryandman89 A promissory not will pay$50,000 at maturity 5 years from now. The note has an interest rate of 6.4% compounded continuously...

1. What is the note worth right now?
2. You bought the note and cashed it after 5 years. How much interest did you earn?

I set up the equation as 50,000=Ce^.064*0 but how do I solve that and then I have no idea how do do the second part of the question...PLEASE HELP!
The equation you require is that:

V(t)=Ce^{0.064 t},

where t is in years. So in this case:

C = 50000/e^{0.064*5}.

The interest paid is 50000 - C.

RonL