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1 . 1 You sider the following two accounts for an investment of $ 5 0 0 , 0 0 0 for 9 years: With
You sider the following two accounts for an investment of $ for years:
With an annual rate of with continuous compounding.
With an annual rate with quarterly compounding that will yield the same amount as
in account after years.
Calculate the annual rate with quarterly compounding that is used in account
A Tbill matures in exactly days. It's face par value is $ The Tbill
trades right now for $
Calculate the annual rate on the Tbill. Use continuous compounding.
You invest $ in an account that pays an annual rate of with
continuous compounding? Calculate the amount of time that it will take for your
account to have $ in it The answer may not be an integer.
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