What Is the Future Value of $100 Continuously Compounded at a Rate

question 30

Multiple Choice

What is the future value of $100 continuously compounded at a rate of 8% p.a.for 9 months?

• A)$106.18
• B)$108.32
• C)$110.56
• D)$102.56

---

Definitions:

Project Profitability Index

A financial metric that calculates the ratio between the present value of future cash flows and the initial investment of the project.

Profitability Index

A financial metric that measures the relative profitability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.

Investment Projects

Initiatives undertaken by companies or individuals to allocate capital in ways expected to yield returns or gains over time, such as purchasing new equipment or expanding operations.

Income Taxes

Taxes imposed by government authorities on the income earned by companies and individuals, a significant component of fiscal policy.