An athlete signs a contract that guarantees a $ 9-million salary 6 yr from now. Assuming that money can be invested at 6.7% with interest compounded continuously, what is the present value of that year's salary?

$6,020,826.711

Step-by-step explanation:

The computation of the present value of that year salary is shown below:

As we know that

Present value in case of continuous compounding, the formula is

where,

The Guaranteed amount is $9,000,000

The Time period is 6 years

And, the interest rate is 6.7%

Now placing these values

So, the present value is

= $6,020,826.711

26

step-by-step explanation: