A bank proudly announces that it has changed its interest computation method to continuous compounding. Now $2000

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A bank proudly announces that it has changed its interest computation method to continuous compounding. Now $2000 left in the bank for 9 years will double to $4000.

(a) What nominal interest rate, compounded continuously, is the bank paying?

(b) What effective interest rate is it paying?

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Engineering Economics Analysis

ISBN: 9780195168075

9th Edition

Authors: Ted G. Feller

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Question Posted: Feb 25, 2010 02:04 AM

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A bank proudly announces that it has changed its interest computation method to continuous compounding. Now $2000

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a Using Equation 439 F Pe rn 4000 2...View the full answer

Engineering Economics Analysis

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