Exercise 2.18: How long will it take to earn $1 in interest if $1,000,000 is deposited at 10% compounded continuously? Exercise 2.19: In 1626 Peter Minuit, governor of the colony of New Netherland, bought the island of Manhattan from Indians paying with beads, cloth, and trinkets worth $24. Find the value of this sum in year 2000 at 5% compounded a) continuously and b) annually. Exercise 2.20: What will be the difference between the value after one year of $100 deposited at 10% compounded monthly and compounded continuously? How frequent should the periodic compounding be for the difference to be less than $0.01? Exercise 2.21: Find the present value of $1000000 to be received after 20 years assuming continuous compounding at 6%. Exercise 2.22: Given that the future value of $950 subject to continuous compounding will be $1,000 after half a year, find the interest rate. Exercise 2.23: Suppose that the logarithmic return over 2 months on an investment subject to continuous compounding is 3%. Find the interest rate. http://engineering.uobabylon.edu.ig/lecture.aspx?fid=3&Icid=20175