If the nominal interest rate is 3%, how much is $5000 worth in 10 years in a continuously compounded account? A $4,188 B) $5,423 c) $6,720 D) $6,749
If the nominal interest rate is 3%, how much is $5000 worth in 10 years in a continuously compounded account? A $4,188 B) $5,423 c) $6,720 D) $6,749
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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![If the nominal interest rate is 3%, how much is $5000 worth in 10 years in a continuously compounded account?
A $4,188
B $5,423
$6,720
D $6,749](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F65e1bf67-1421-435b-bae3-bfd88adfbf37%2F072cfcd6-7acc-42c7-a4ed-fd35fd5ec8b1%2F0kmsu4h_processed.png&w=3840&q=75)
Transcribed Image Text:If the nominal interest rate is 3%, how much is $5000 worth in 10 years in a continuously compounded account?
A $4,188
B $5,423
$6,720
D $6,749
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