Question
What rate of interest with continuous compounding is equivalent to a) 9.5% per annum with monthly compounding, b) 9.5% per annum with quarterly compounding? Please
What rate of interest with continuous compounding is equivalent to a) 9.5% per annum with monthly compounding, b) 9.5% per annum with quarterly compounding? Please choose one.
a. Equivalent rate to monthly comp.: %9.588 Equivalent rate for quarterly comp.: %9.664
b. Equivalent rate to monthly comp.: %9.538 Equivalent rate for quarterly comp.: %9.614
c. Equivalent rate to monthly comp.: %9.488 Equivalent rate for quarterly comp.: %9.564
d. Equivalent rate to monthly comp.: %8.538 Equivalent rate for quarterly comp.: %8.614
e. Equivalent rate to monthly comp.: %10.538 Equivalent rate for quarterly comp.: %10.614
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