q7

An investor bought stock for $40000. Fourteen years later, the stock was sold for $50000. If interest is compounded continuously: what annual nominal rate of interest did the original $40000 investment earn? The annual nominal rate ofinterest earned is %_ (Round to two decimal places as needed.) Solving A: F's"t for P: we obtain F' = Ae' '1 which is the present value of the amountA due in tyears if money.r earns interest at an annual nominal rate r compounded continuously. (A) Graph P=14if \"-09\" DStSSD. (B) Find limtqm14'00060'09t. [Guess using part rm] [Conclusion The longer the time until the amountA is due: the smaller is its present value, as we would expect] \fSolving A = Pelt for P, we obtain P= Ae"which is the present value of the amount A due in t years if money earns interest at an annual nominal rate r compounded continuously. For the function P = 8,000e" .Us, in how many years will the $8,000 be due in order for its present value to be $5,000? In years, the $8,000 will be due in order for its present value to be $5,000. (Type an integer or decimal rounded to the nearest hundredth as needed.)Solve for r to two decimal places. 8=e 4r (Do not round until the final answer. Then round to the nearest hundredth as needed.)Recently. a certain bank offered a 5-year CD that earns 2.46% compounded continuously. Use the given information to answer the questions. E> (a) If $103000 is invested in this CD. how much will it be worth in Syears? approximately 513D {Round to the nearest cent.) Present value. A promissory note will pay $70,000 at maturity 7 years from now. How much should you be willing to pay for the note now if money is worth 6.25% compounded continuously? . . . $(Round to the nearest dollar.)