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(a) The AMD investment company has advertised a new Mutual Fund that has advertised to pay 10 % compounded continuously. Bob invested $ 8,500 in
(a) The AMD investment company has advertised a new Mutual Fund that has advertised to pay 10 % compounded continuously. Bob invested $ 8,500 in the Mutual Fund, but was disappointed to receive only $ 12,500 at the end of five (5) years. What was the actual rate at which the fund was continuously compounding? (b) What if AMD was pay interest compounded monthly, instead of continuously. What rate would have allowed Bob's investment of $ 8,500 to grow to $ 12,500 in five (5) years?
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