Joe wants to buy a bond that will mature to 6000 in seven years. How much should he pay for the bond now if it earns interest at a rate of 2% per year, compounded continuously?

Solución

Solución

Principal : 5216.15

Pasos de solución

Translate the problem into an equation:

6000 = P e^{0.02 \cdot 7}

Resolver para

P, 6000 = P e^{0.02 \cdot 7} : P = 5216.15

Principal : 5216.15

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