The continuously compounded interest rate is 12%. a. You invest $1,000 at this rate. What is the
Question:
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?
c. 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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Related Book For 
Principles of Corporate Finance
ISBN: 978-0077404895
10th Edition
Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen
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