Question 1 Cloe borrows $4, 000,000 from a building society for 3 years at an annual rate of interest of 6% and she is going to pay it all back in a lump sum at the end of year 3. She will make no repayments before the end of the loan. How much she will have to pay back at the end of three years if the annual interest rate is compounded continuously? A. $738,369.45 B. $4,783,869.45 (3. $4,764,064 D. $764,064 E. None of the above is necessarily true. Question 2 I want to invest P dollars and two banks are willing to accept P for 1: years. Bank 1 offers me an annual rate of interesti (compounded annually, that is, k = 1 l and Bank 2 offers me an annual rate of interest 6 compounded continuously. A financial advisor told me that I might feel certain that there exists a relationship between iand 6 at which it does not matter ifl put my money in Bank 1 or Bank 2. Which of the following options is true? A. The relationship is In 1 + 1n 6 = i B. The relationship is 6 = i - k c. The relationship is 6 = (1 +3 1 D. The relationship is 6' = ln(1 + i) E. Not enough information is supplied to provide an insure: Question 3 What is the approximate number of years I for the principal to double when the annual interest r is compounded continuously? N 0.68 A.t~