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Maria, who is now 52 years old, is employed by a firm that guarantees her a pension of $45,000/year at age 65. What is the present value of her first year's pension if the inflation over the next 13 years is 2%/year compounded continuously? 3%/year compounded continuously? 5%/year compounded continuously? (Round your answers to the nearest cent.) at 2%/year       at 3%/year       at 5%/year

Maria, who is now 52 years old, is employed by a firm that guarantees her a pension of $45,000/year at age 65. What is the present value of her first year's pension if the inflation over the next 13 years is 2%/year compounded continuously? 3%/year compounded continuously? 5%/year compounded continuously? (Round your answers to the nearest cent.) at 2%/year       at 3%/year       at 5%/year

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Maria, who is now 52 years old, is employed by a firm that guarantees her a pension of $45,000/year at age 65. What is the present value of her first year's pension if the inflation over the next 13 years is 2%/year compounded continuously? 3%/year compounded continuously? 5%/year compounded continuously? (Round your answers to the nearest cent.)

at 2%/year      
at 3%/year      
at 5%/year  
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