Solve the problem.Which has the lower present value: (a) $60,000 if interest is paid at a rate of 6.82% compounded continuously for 3 years or (b) $110,000 if interest is paid at a rate of 4.6% compounded continuously for 40 months?

A. (a) has the lower present value.
B. (b) has the lower present value.
C. Both (a) and (b) have the same present value.


Answer: A

Mathematics

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