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Suppose you have a savings account that provides continuously compounding interest with an PR of r%. Additionally, you deposit R dollars into the account at
Suppose you have a savings account that provides continuously compounding interest with an PR of r%. Additionally, you deposit R dollars into the account at the end of each calendar year. 1. What is the value of the account after 3 years have passed? 2. If you are making these payments for 3 years, how much money must be invested today in order to cover all payments? 3. If we make these payments in perpetuity, find a formula that describes the amount of principal that must be invested today to cover all future payments. 4. If we invest like this for three two years, but instead use an account with an APR. s% compounded weekly, determine s so that this second account has the same value as your answer in part 1 . after two years
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