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Task 3 A company budgets to invest USD 5,000,000 in 20 years. There is an option to invest at nominal interest rates of 5% per

Task 3\ A company budgets to invest USD

5,000,000

in 20 years. There is an option to invest at\ nominal interest rates of

5%

per annum.\ a) How much does the firm have to invest today if they are to haveUSD

5,000,000

in\ 20 years and the interest rate is semi-annual.\ b) How much does the firm have to invest today if they are to haveUSD

5,000,000

in\ 20 years and the interest rate is continuous.

image text in transcribed
A company budgets to invest USD 5,000,000 in 20 years. There is an option to invest at nominal interest rates of 5% per annum. a) How much does the firm have to invest today if they are to haveUSD 5,000,000 in 20 years and the interest rate is semi-annual. b) How much does the firm have to invest today if they are to haveUSD 5,000,000 in 20y ears and the interest rate is continuous

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