An Investment Is Expected to Pay 5% Per Year Compounded

question 44

Multiple Choice

An investment is expected to pay 5% per year compounded continuously. If you want the value of the investment to be $900,000 after 25 years, how much should you invest initially? Round to the nearest dollar.

• A)$64,464
• B)$128,927
• C)$257,854
• D)$515,709
• E)$429,203

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