Find the present value of $9,000 payable at the end of 4 years, if money may be invested at 4% with interest compounded continuously.

the present value is $7,669.294

Explanation:

The computation of the present value is shown below:

As we know that

A = Present value × e^(rate × time period)

$9,000 = Present value  ×  e^(0.04 × 4)

Present value = $9,000 ÷ e^0.16

= $9,000 ÷ 1.1735

= $7,669.294

Hence, the present value is $7,669.294

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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