Solve the Problem. -Which Has a Lower Present Value: $30,000 If Interest Is

question 93

Multiple Choice

Solve the problem.
-Which has a lower present value: $30,000 if interest is paid at a rate of 5.98% compounded continuously for 5 years, or $33,000 if interest is paid at a rate of 3.3% compounded continuously for 65 months?

• A)$33,000 with interest is paid at a rate of 3.3% compounded continuously for 65 months has a lower present value.
• B)$30,000 with interest paid at a rate of 5.98% compounded continuously for 5 years has a lower present value.
• C)Both investments have the same present value.

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