Solve the problem.Which has a lower present value: $50,000 if interest is paid at a rate of 5.44% compounded continuously for 2 years, or $54,000 if interest is paid at a rate of 3.7% compounded continuously for 33 months?

A. Both investments have the same present value.
B. $50,000 with interest paid at a rate of 5.44% compounded continuously for 2 years has a lower present value.
C. $54,000 with interest is paid at a rate of 3.7% compounded continuously for 33 months has a lower present value.


Answer: B

Mathematics

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