Eleni, who is now 55 years old, is employed by a firm that guarantees her a pension of $90,000/year at age 70. What is the present value of her first year's pension if inflation over the next 15 year(s) is at the given rate. Assume that inflation is continuously compounded. Round your answer to the nearest cent.
6% _________

9% _________

18% _________

A) $64,219.68, $71,866.46, $6,048.50
B) $36,591.27, $23,331.62, $6,048.50
C) $57,386.53, $64,219.68, $6,048.50
D) $57,386.53, $64,219.68, $71,866.46

Question

Eleni, who is now 55 years old, is employed by a firm that guarantees her a pension of $90,000/year at age 70. What is the present value of her first year's pension if inflation over the next 15 year(s) is at the given rate. Assume that inflation is continuously compounded. Round your answer to the nearest cent. ​
6% _________
​
9% _________
​
18% _________
​
A) $64,219.68, $71,866.46, $6,048.50
B) $36,591.27, $23,331.62, $6,048.50
C) $57,386.53, $64,219.68, $6,048.50
D) $57,386.53, $64,219.68, $71,866.46

Quizplus · Accepted Answer

The Answer of Eleni, who is now 55 years old, is employed by a firm that guarantees her a pension of $90,000/year at age 70. What is the present value of her first year's pension if inflation over the next 15 year(s) is at the given rate. Assume that inflation is continuously compounded. Round your answer to the nearest cent. ​
6% _________
​
9% _________
​
18% _________
​
A) $64,219.68, $71,866.46, $6,048.50
B) $36,591.27, $23,331.62, $6,048.50
C) $57,386.53, $64,219.68, $6,048.50
D) $57,386.53, $64,219.68, $71,866.46

Eleni, Who Is Now 55 Years Old, Is Employed by a Firm