Question: The continuously compounded interest rate is 1 2 % . ( a ) You invest $ 1 , 0 0 0 at this rate. What

The continuously compounded interest rate is 12%.(a) You invest $1,000 at this rate. What is the investment worth after five years?(b) What is the PV of $5 million to be received in eight years?What is the PV of a continuous stream of cash flows, amounting to $2,000 per year, starting immediately and continuing for 15 years?

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