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Your bank account pays interest with an effective annual interest rate ( EAR ) of 1 0 % . ( a ) If you invest

Your bank account pays interest with an effective annual interest rate (EAR) of 10%.
(a) If you invest $1000 now, how much do you receive in one year?
(b) What is the percentage return per annum based on semiannual compounding?
(c) What is the percentage return per annum based on monthly compounding?
(d) What is the continuously compounded annual interest rate?
(e) Suppose you want to have $500000 saved by the time you reach age 30 and suppose that you are 20 years old today. How much would you have to invest today to reach your goal?

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