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1 page/≈275 words
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Level:
APA
Subject:
Mathematics & Economics
Type:
Math Problem
Language:
English (U.S.)
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Topic:
Math Problem Paper (Math Problem Sample)
Instructions:
An investor receives $1084.0 in 2 weeks for an initial investment of $1035.0. What is annual percentage return with continuous compounding? Show work a. 232.90 b. 120.27 c. 123.09
source..Content:
An investor receives $1084.0 in 2 weeks for an initial investment of $1035.0. What is annual percentage return with continuous compounding? Show work a. 232.90 b. 120.27 c. 123.09 Continuous Compound interest is given by
A= P ert
Where r is the rate of interest rate
P = is the Principal
R is the rate of interest
E is the constant e
1 year has 52 weeks
Thus 2 weeks is equivalent to 2/52 years = 0.03846
A= P ert
1084 = 1035 e ^ 0.03846 r
1084 = e ^ 0.03846r
1035
Thus 0.03846r = ln (1084 / 1035)
Ln (1084 / 1035) = 0.046256
Th...
A= P ert
Where r is the rate of interest rate
P = is the Principal
R is the rate of interest
E is the constant e
1 year has 52 weeks
Thus 2 weeks is equivalent to 2/52 years = 0.03846
A= P ert
1084 = 1035 e ^ 0.03846 r
1084 = e ^ 0.03846r
1035
Thus 0.03846r = ln (1084 / 1035)
Ln (1084 / 1035) = 0.046256
Th...
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