Annual percentage return with continuous compounding

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1. With a 4% annual rate of discount, $12,480 one year from now is worth what amount four years from now? If you started with $108.16, two years from now is worth what amount now?

2. An investor receives $1084.0 in 2.0 weeks for an initial investment of $1035.0. What is annual percentage return with continuous compounding?

3. Bane Inc is offering bonds that pay $400 per year indefinitely. If you require a 13 percent return on these bonds - that is, the discount rate is 13 percent - what is the value of each bond?

Reference no: EM131967041

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