A chess club called Fritzblitz hosts chess tournaments every month. The winner of each tournament receives a prize of 50$. Fritzblitz has a total budget of 2000$. If they invest the money in a bank account with an interest rate of r% per month, compounded continuously, how much does r have to be at the very least for Fritzblitz to be able to finance tournaments "forever"? (The first tournament is today.) O 0.975% O 2.50% O 2.53% O 2.56% O 2.61% O None of the above
A chess club called Fritzblitz hosts chess tournaments every month. The winner of each tournament receives a prize of 50$. Fritzblitz has a total budget of 2000$. If they invest the money in a bank account with an interest rate of r% per month, compounded continuously, how much does r have to be at the very least for Fritzblitz to be able to finance tournaments "forever"? (The first tournament is today.) O 0.975% O 2.50% O 2.53% O 2.56% O 2.61% O None of the above
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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Transcribed Image Text:A chess club called Fritzblitz hosts chess tournaments every month. The winner of each
tournament receives a prize of 50$. Fritzblitz has a total budget of 2000$. If they invest the
money in a bank account with an interest rate of r% per month, compounded continuously, how
much does r have to be at the very least for Fritzblitz to be able to finance tournaments
"forever"? (The first tournament is today.)
O 0.975%
O 2.50%
O 2.53%
2.56%
O 2.61%
O None of the above
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