Suppose that April has access to an investment that will pay 10% compounded interest compounded continuously. Which is better: To be given $1000 now so that she can take advantage of this investment opportunity, or to be givedn $1325 after 3 years?
I have:
P = Ae^-rt
1000 = Ae^-.10(3)
1000/e = A^-.3
A = 1349.86
So the investment is the better option. Have I calculated everything correctly?


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