10. (a) Emma is depositing $8,500 into a fixed deposit account that compounds interest continuously. After...
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10. (a) Emma is depositing $8,500 into a fixed deposit account that compounds interest continuously. After 5 years, the amount will accumulate to $17, 250. What is the nominal interest rate? Provide the answer to two decimal places as a percentage. (b) How long will Emma's deposit described in part (a) take to accumulate to $31,000 if the annual interest rate is 7.5% compounded continuously? Approx- imate to one decimal place. (c) Determine the effective interest rate, re, using the information in part (b), un- der continuous compounding. Provide the answer to two decimal places as a percentage. 10. (a) Emma is depositing $8,500 into a fixed deposit account that compounds interest continuously. After 5 years, the amount will accumulate to $17, 250. What is the nominal interest rate? Provide the answer to two decimal places as a percentage. (b) How long will Emma's deposit described in part (a) take to accumulate to $31,000 if the annual interest rate is 7.5% compounded continuously? Approx- imate to one decimal place. (c) Determine the effective interest rate, re, using the information in part (b), un- der continuous compounding. Provide the answer to two decimal places as a percentage.
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