1. An investment promises to pay 8 percent interest per annum, compounded continuously. The initial amount needed is Php 100,000. Assuming the investment succeeds, (a) find the time required for the account to double in value, presuming no withdrawals and no additional amount were invested again. (b) If you decide to pull out your investment together with the earnings at the end of two years, how much will you be able to withdraw?

1. An investment promises to pay 8 percent interest per annum, compounded continuously. The initial amount needed is Php 100,000. Assuming the investment succeeds, (a) find the time required for the account to double in value, presuming no withdrawals and no additional amount were invested again. (b) If you decide to pull out your investment together with the earnings at the end of two years, how much will you be able to withdraw?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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