A company invested $ 800,000 in a project, if the interest rate is 12% per year compounded quarterly, find the quarterly income required to recover the investment in 3 years? How long would it take for a present investment to double in value at an interest rate of 1.5% per month compounded continuously? 1. Consider the following cash flow diagram. What is the value of X if the present worth of the diagram is $400 and the interest rate is 15% compounded annually? 200 a. A young engineer calculated that monthly payments of SA are required to pay off a $5,000 loan for n years at 1% interest, compounded annually. If the engineer decides to borrow $10,000 instead with the same n and 1%, what will be her monthly payments to ensure both methods are the same? b. What is the effective annual interest rate if the nominal annual interest rate is 24% per year compounded monthly?