Answer:
$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
[tex]= \frac{Guaranteed\ amount}{e^{0.067 \times 6}}[/tex]
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
[tex]= \frac{\$9,000,000}{e^{0.067 \times 6}}[/tex]
= $6,020,826.711
