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2. You are given 10,000 as a graduation present and you want to buy a new car in the future. Therefore you invest your gift
2. You are given 10,000 as a graduation present and you want to buy a new car in the future. Therefore you invest your gift in a money market account paying continuously compounded interest rate of 5% per annum. The car costs 10,000*2 (a) How many years will it be before you will be able to purchase the car from your savings? (b) How does your answer change if interest is compounded annually rather than continuously. (c) Explain the reason for any difference in your answers to part (a) and (b)
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