Question

QUESTION 4

1. How many years will it take for an investment of $1,009 to grow to $2,456 if it is invested at 8% compounded semiannually?

   Please round your answer to the second decimal (e.g. 0.00)

QUESTION

1. What is the effective annual rate (EAR) with an annual rate of 10.21% compounded continuously?

   Please round your answer to the fourth decimal. (e.g. if the answer is 1.11%, you should input 0.0111).

Answer 1

EAR = [(1 +stated rate/no. of compounding periods) ^no. of compounding periods - 1]* 100

? = ((1+8/(2*100))^2-1)*100

Effective Annual Rate% = 8.16

Future value = present value*(1+ rate)^time

2456 = 1009*(1+0.0816)^Time

Time(in years) = 11.34

Using Calculator: press buttons "2ND"+"FV" then assign

FV =-2456

PV =-1009

I/Y =8.16

PMT = 0

CPT N

Using Excel

=NPER(rate,pmt,pv,fv,type)

=NPER(0.0816,,-1009,2456,)

Please ask remaining parts seperately, questions are unrelated