Question: ( Continuous compounding, 1 1 ) Suppose you have $ 1 million and you can invest it in a bank account that pays interests at
Continuous compounding, Suppose you have $ million and you can invest it in a bank account that pays interests at an annual percentage rate APR of You want to invest your $m for years. a Suppose you are allowed to reinvest the interest at the end of every year ie annual compounding What is the balance of your account at the end of year b Suppose you are allowed to reinvest the interest at the end of every month ie monthly compounding What is the balance of your account at the end of year c Suppose you are allowed to reinvest the interest at the end of every day ie daily compounding What is the balance of your account at the end of year Assume there are days in a year.d Suppose you are allowed to reinvest the interest at the end of every hour ie hourly compounding What is the balance of your account at the end of year Assume there are days in a year and hours in a day.
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