Question
Accumulated present value. Find the accumulated present value of an investment for which there is a perpetual continuous money flow of $\$ 5000$ per year, assuming continuously compounded interest at a rate of $8 \%$
Step 1
The formula is given by the integral of P * e^(-kt) dt, where P is the cash flow, k is the interest rate, and t is the time. Show more…
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Accumulated present value. Find the accumulated present value of an investment for which there is a perpetual continuous money flow of $\$ 2000 e^{-0.01 t}$ per year, assuming continuously compounded interest at a rate of $7 \%$
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