1.An interest rate of a% per annum is compounded c times per year. What is the equivalent rate:

1. with continuous compounding?
2. if the interest is to be compounded b times per year.

2.An investor receives $(X+Y) in one year in return for an investment of $X now. Calculate the percentage return per annum:

1. with continuous compounding.

1. if the interest is to be compounded b times per year.