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How Much Should You Be Willing to Pay for an Account

Question 4

Multiple Choice

How much should you be willing to pay for an account today that will have a value of $1,000 in 7 years under continuous compounding if the nominal rate is 8.30%?


A) $682.39
B) $559.34
C) $425.10
D) $637.65
E) $660.02

Correct Answer:

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