Question: Complete the table for an account in which interest is compounded continuously. (Round your answers to two decimal places.) Amount after 10 years Amount after

Complete the table for an account in which interest is compounded continuously. (Round your answers to two decimal places.) Amount after 10 years Amount after 25 years Initial Annual rate Time to double investment $50,000 x % 10 years $ For a rate r (in decimal form) that is compounded n times per year, the effective rate refr (in decimal form) is Felf For a rate r (in decimal form) that is compounded continuously, the effective rate relf (in decimal form) is relle 1 Use the above equations to complete the table showing the effective rates for nominal rates of r 6 %, r 79%, andr (Round your answers to five decimal places.) (a) r-6 % Number of compoundings 4 12 365 Continuous per year Effective yield 06136 .06168 06183 (b) r-7% Number of compoundings 4 12 365 Continuous per year Effective yield 07186 07229 0725 r (c) Number of compoundings 4 12 365 Continuous per year Effective yield 08775 08839 08871
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
