Alonzo wants to buy a bond that will mature to $5000 in seven years. How much should he pay for the bond now if it earns interest at a rate of 4% per year, compounded continuously?
Alonzo wants to buy a bond that will mature to $5000 in seven years. How much should he pay for the bond now if it earns interest at a rate of 4% per year, compounded continuously?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Alonzo wants to buy a bond that will mature to $5000 in seven years. How much should he pay for the bond now if it earns interest at a rate of 4% per year, compounded continuously?
Do not round any intermediate computations, and round your answer to the nearest cent.
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