Question
Problem 1: If you have $1,300 today, how much will it be worth in 8 years at 10 percent per year compounded continuously? (Hint: please
Problem 1:
If you have $1,300 today, how much will it be worth in 8 years at 10 percent per year compounded continuously?
(Hint: please see Interest Rate Part 1 slides and Continues Compounding Example)
Problem 2:
What rate of interest with continuous compounding is equivalent to 15% per annum with monthly compounding?
(Hint: please see Problem 1 hint)
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Multinational Financial Management
Authors: Shapiro A.C.
9th International Edition
8126536934, 9788126536931
