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Can you solve the below questions? All i got the wrong answers,, How would your answers qualitatively change if the Interest rate were only 5

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Can you solve the below questions? All i got the wrong answers,,

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How would your answers qualitatively change if the Interest rate were only 5 percent? Would you still buy the wine? Would you keep It for longer or shorter? Q You would buy the case of wine. but keep It for a longer time Q You would buy the ease of wine. but keep It for a shorter tlrne Q You are indifferent between buying the case of wine and not Q You wOuId not buyI the case of wine 0 You would buy the case of wine. whereas before you would not have bought It In lecture, Professor Gruber explained discrete compounding interest. Interest can also be compounded continuously. Here we explain the difference. Professor Gruber calculated future value as FV = P(1 + r), where P is the principal, r is the interest rate, and t is the term of the contract (often in years). This formula can be generalized to FV = P(1 + r/m)", where m is the number of compounding periods per year (in lecture, this was 1). That is, after every compounding period, more interest accrues on both the principle and the previous accrued interest. This is discrete compounding. Suppose that m becomes large. For example, the interest rate could be 10% per year, but compounded each minute. Future value rises as m increases, but it rises at a diminishing rate. It turns out that as m goes to infinity, future value is described by an exponential function, FV = Pert, where e is the base of the natural logarithm. This is continuous compounding. Problem PS9.1.1a 0/4 points (graded) You are planning to invest in fine wine. Each case costs $100 (at time 0), and you know from experience that the (future) value of a case of wine held for t years is 100vt for t 2 1. (Suppose that the value is 100 for 0

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