iR=25R=4 Suppose an investment opportunity in advertising an interest rate of iR per year compounded continuously. Determine each of the following: a) the effective annualinterest rate; and b) the amount that must be invested now if you wish to earn SRX1.000 in 20 years. For part a, report your answer to six decimal places it usingdecimal form (e.g.. 0.123456) or four decimal places if using percentage form (e.g., 12.3458%).compound interest tables from Newnan et al 2007edf

In this we need to find the effective interest rate and amount of deposit required today.

Answered: opose an investment opportunity is…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 10EB: You have been depositing money into an account yearly based on the following investment amounts,...

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