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Find the principal needed now to get the given​ amount; that​ is, find the present value.To get $ 90 after 2 and three fourths years at 6​% compounded continuouslyThe present value of $ 90 is $ nothing .​(Round to the nearest cent as​ needed.)

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danishmujtabaqureshi

Explanation:

For continuous compounding, we use the following formula

[tex]FV_{N} = PVe^{i N}[/tex]

Scenario 1 :

FV = $ 90

N = 2 years

I = 6%

PV= ?

[tex]FV_{N} = PVe^{i N}[/tex]

[tex]90 = PVe^{(0.06) (2)}[/tex]

[tex]\frac{90}{e^{(0.06) (2)}} = PV[/tex]

[tex]PV = 79.8228[/tex]

PV = $ 79.82

Scenario 2:

[tex]FV_{N} = PVe^{i N}[/tex]

[tex]90 = PVe^{(0.06) (3)}[/tex]

PV = $ 75.17

Scenario 3:

[tex]FV_{N} = PVe^{i N}[/tex]

[tex]90 = PVe^{(0.06) (4)}[/tex]

PV = $ 70.80

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