Suppose that you can invest with a continuously compounded rate of 5.25% per annum. (i) If you

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Suppose that you can invest with a continuously compounded rate of 5.25% per annum.

(i) If you invest $50,000 today, how many years will it take for your investment to be worth $1 million?

(ii) If you want your investment to grow to be $1 million in 10 years, how much do you need to invest today?

(iii) Compute the equivalent effective 1-year rate.

Posted Date: May 19, 2024 11:11 AM

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Suppose that you can invest with a continuously compounded rate of 5.25% per annum. (i) If you

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