Question $3$

An investment pays a stated APR rate of $7\mathrm{.}9\%.$ What is the effective annual rate under

continuous compounding?

Enter answer as a percentage, accurate to two decimal places.

Bonus thinking question: how does this compare to daily compounding? monthly

compounding?

Question $4$

One of your clients plans to save $$14$ thousand every year, starting at the end of this year,

and invest the funds in an account projected to earn $6\%$ per year. How much will they have in

the account $18$ years from now?