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A promissory note will pay $40,000 at maturity 6 years from now. how much should you be willing to pay for the note now if money is worth 4.25% compounded​ continuously?

A promissory note will pay $40,000 at maturity 6 years from now. how much should you be willing to pay for the note now if money is worth 4.25% compounded​ continuously?
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4 votes
A promissory note will pay $40,000 at maturity 6 years from now. how much should you be willing to pay for the note now if money is worth 4.25% compounded​ continuously?

asked
User Matthew Holmes
by
8.0k points

1 Answer

6 votes
P=A/e^rt
P=40,000÷e^(0.0425×6)
P=30,996.66
answered
User Andrey Tretyak
by
9.1k points
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