Solving A=Pert for P, we obtain P=Ae-rt which is the present value of the amount A due in t years if money earns interest at an annual nominal rate r compounded continuously. For the function P=2 ,000e-0.06t, in how many years will the $2 ,000 be due in order for its present value to be $1,000?

Solving A=Pert for P, we obtain P=Ae-rt which is the present value of the amount A due in t years if money earns interest at an annual nominal rate r compounded continuously. For the function P=2 ,000e-0.06t, in how many years will the $2 ,000 be due in order for its present value to be $1,000?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Solving A=Pert for P, we obtain P=Ae-rt
which is the present value of the amount A
due in t years if money earns interest at an
annual nominal rate r compounded
continuously. For the function P=2
,000e-0.06t, in how many years will the $2
,000 be due in order for its present value to
be $1,000?

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