1. A series of equal quarterly receipts of $5000 extends over a period of five years. What is the estimated present worth of this quarterly payment series at 8% interest compounded continuously?
1. A series of equal quarterly receipts of $5000 extends over a period of five years. What is the estimated present worth of this quarterly payment series at 8% interest compounded continuously?
2. You have just inherited $200,000 and wisely decide to invest your money in a diversified portfolio with your investment firm. You financial advisor tells you that you can earn an average of 8% interest per year on your investment. You tell your advisor that you want to retire as soon as your account balance reaches S1,000,000. If you do not add or take money out of your account and interest does not fluctuate, how long, rounded to the nearest year, will it take before you have a S1,000,000 balance?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
