How do I solve this question?
I'd like to know how to make a formula!
An investment is expected to produce a uniform continuous rate of money flow of $500 per year for 10 years. Find the present value at 9% compounded continuously.
For the end of year payment version, you should have
You can now easily derive a formula from the preceding statement if youíre already familiar with geometric series, as Iím sure you are.
If you wish to avoid the sigma notation (and see the formula itself using the 1st hint I gave you earlier),
see my post at S.O.S. Mathematics CyberBoard :: View topic - Continuous compounding of interest
For the beginning of year payment version, you should have