SOLVED:Find the present value of 500 in 3 years at 8 percent when interest is compounded (a) annually and (b) continuously. a) P =500(1.08)^-3 =500(0.79383) ≈396.92 b) P =S e^-r t=500 e^-0.08(3)=500 e^-0.24 =500(0.78663) ≈393.32
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