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    Present value with Continuous Compounding

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    At a 12 percent rate of interest, using continuous compounding, which of the following three options has the highest present value:

    Value Now Value in 1 Year Value in 2 Years
    A 0 0 230
    B 0 100 110
    C 100 0 105

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    Solution Summary

    Determines present value with continuous compounding.

    $2.19