A business associate who owes you 7200 dollars offers to pay you 6720 now, or else pay you three yearly installments of 2400 each, with the first installment paid now. Assume that the interest rate will be 6 percent (compounded continuously). If you use only financial reasons to make your decision, which option should you choose?(adsbygoogle = window.adsbygoogle || []).push({});

Justify your answer, by computing the present value of the 3 installments.

how do I do this?!

I tried

3

S 2400*e^(-0.06*t)

0

2

S 2400*e^(-0.06*t)

0

S=integral sign.

but both of them is not correct!!!

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# Homework Help: Present value

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