What is the present value of $10,000 over a 5 year period of time if interest is compounded continuously at an annual rate of 7%?
From what I understand, the formula is P = Be^-rt
10,000 = Be^-.07(5)
10,000 = Be^-.35
Do I divide 10,000 by the value of e^-.35?
Could you give me some calculator hints?
I got it now...I am using a scientific calculator (drug store brand CVS). When I started this course, they said calculators wouldn't be allowed for exams...so I have never really learned how to use this type of calculator and of course, since it was borrowed, I don't have the instruction book.