Question 1. Equivalent interest rates and doubling time. a) Interest is compounded twice per year for 5 years at a rate of r2 = 3% per annum. Find the equivalent interest rate ra for annual compounding and r for continuous compounding b) Using your results from part (a) find the number of years required for your balance to double if interest is compounded annually at rate ra, twice per year at rate r2 and continuously at rate r. Give your answer correct to within one-tenth of a year. c) Consider an asset that pays N at maturity 5 years from now. If the present value of the asset is $300 find N. Use the interest rates from part (a) to compute N. Question 1. Equivalent interest rates and doubling time. a) Interest is compounded twice per year for 5 years at a rate of r2 = 3% per annum. Find the equivalent interest rate ra for annual compounding and r for continuous compounding b) Using your results from part (a) find the number of years required for your balance to double if interest is compounded annually at rate ra, twice per year at rate r2 and continuously at rate r. Give your answer correct to within one-tenth of a year. c) Consider an asset that pays N at maturity 5 years from now. If the present value of the asset is $300 find N. Use the interest rates from part (a) to compute N