Continuously compounded interest
What is the present value of $10,000 over a 5 year period of time if interest is compounded continuously at an annual rate of 7%?
From what I understand, the formula is P = Be^-rt
10,000 = Be^-.07(5)
10,000 = Be^-.35
Do I divide 10,000 by the value of e^-.35?
Could you give me some calculator hints?
My answer doesn't match yours
I must be doing something incorrectly. I may not be using the calculator in the right way. I am coming up with e^.35 = 0.692506438. Multiplying that by 10,000 is giving me 14,303.687, rounded up to 14,303.69.