View Single Post
  #1  
Old October 11th, 2007, 11:12 PM
ryandman89 ryandman89 is offline
Newbie
 
Join Date: Sep 2007
Posts: 8
Country:
Thanks: 0
Thanked 0 Times in 0 Posts
ryandman89 is on a distinguished road
Default Business Caluculus

A promissory not will pay $50,000 at maturity 5 years from now. The note has an interest rate of 6.4% compounded continuously...

1. What is the note worth right now?
2. You bought the note and cashed it after 5 years. How much interest did you earn?

I set up the equation as 50,000=Ce^.064*0 but how do I solve that and then I have no idea how do do the second part of the question...PLEASE HELP!
Reply With Quote