Question
An investment was purchased for $7,887,699.11. After four years and three months this investment was worth $12,111,545.32. What is the continuously compounded return on the
An investment was purchased for $7,887,699.11. After four years and three months this investment was worth $12,111,545.32. What is the continuously compounded return on the investment, and by how much would the return need to increase to achieve the same dollar outcome if the investment had been a simple interest investment?
a. | 12.85% and the simple interest return would need to be 0.53% lower | |
b. | 10.62% and the simple interest return would need to be 1.98% higher | |
c. | 10.09% and the simple interest return would need to be 0.53% higher | |
d. | 10.09% and the simple interest return would need to be 2.51% higher |
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