Solving A = Pe" for P, we obtain P = Ae- which is the present value of the amount A due in t years if money earns interest at an annual nominal rate r compounded continuously. (A) Graph P = 3,000e¬0.04t 0sts 100. (B) Find lim,3,000e¬0.04t (Guess, using part (A).] [Conclusion: The longer the time until the amount A is due, the smaller is its present value, as we would expect.] (A) Choose the correct graph of P = 3,000e¬0.04t 0sts100. O A. OB. Oc. OD. 3000- AP 3000 AP Q AP 3000- 3000- 0- 0- 100 100 100 100 (B) lim 3,000e¬0.04t

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