Question: If the nominal interest is 12% compounded continuously, compute the effective annual rate if interest. Compute the difference in the future amount of P500 compounded

  1. If the nominal interest is 12% compounded continuously, compute the effective annual rate if interest.
  2. Compute the difference in the future amount of P500 compounded annually at nominal rate of 5% and if it is compounded continuously for 5 years at the same rate.
  3. If the effective rate is 24%, what nominal rate of interest is charged for a continuously compounded loan?

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