nuously compounded APRs). Suppose that someone came to you with an opportunity: they need $1,000 in 2 months to invest in a project. 2 months later (4 months from today) they will pay you back plus $6.62 of interest. Should you take the deal? If yes, what is the lowest interest payment you can accept for this deal? 1 month 2 months 3 months 4 months 5 months 6 months 2.60% 2.75% 2.85% 2.93% 2.98% 3.00% *Please provide step by step instructions with any formulas if appl
nuously compounded APRs). Suppose that someone came to you with an opportunity: they need $1,000 in 2 months to invest in a project. 2 months later (4 months from today) they will pay you back plus $6.62 of interest. Should you take the deal? If yes, what is the lowest interest payment you can accept for this deal? 1 month 2 months 3 months 4 months 5 months 6 months 2.60% 2.75% 2.85% 2.93% 2.98% 3.00% *Please provide step by step instructions with any formulas if appl
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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Question
You see the following rates (continuously compounded APRs). Suppose that someone came to you with an opportunity: they need $1,000 in 2 months to invest in a project. 2 months later (4 months from today) they will pay you back plus $6.62 of interest. Should you take the deal? If yes, what is the lowest interest payment you can accept for this deal?
1 month |
2 months |
3 months |
4 months |
5 months |
6 months |
2.60% |
2.75% |
2.85% |
2.93% |
2.98% |
3.00% |
*Please provide step by step instructions with any formulas if applicable*
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