Suppose an investment is expected to generate income at the rate of dollars/year for the next 6 years. Find the present value of this investment if the prevailing interest rate is 8% / year compounded continuously. Round your answer to the nearest dollar.
A) $950,930
B) $953,042
C) $951,802
D) $957,375

Question

Suppose an investment is expected to generate income at the rate of  dollars/year for the next 6 years. Find the present value of this investment if the prevailing interest rate is 8% / year compounded continuously. Round your answer to the nearest dollar.
A) $950,930 
B) $953,042 
C) $951,802 
D) $957,375

Quizplus · Accepted Answer

The Answer is B

Suppose an Investment Is Expected to Generate Income at the Rate