Ottawa-INVEST is offering an investment that pays an APR of 5% with continuous compounding. What is...

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Ottawa-INVEST is offering an investment that pays an APR of 5% with continuous compounding. What is...

Ottawa-INVEST is offering an investment that pays an APR of 5% with continuous compounding. What is the effective annual rate of return provided by this investment?

Question 28 options:

	5.13%
	5.50%
	5.00%
	Not enough information.
	4.12%

business finance

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Answer 1

Answer #1

The effective annual rate of return is calculated in Excel as follows:-

=EXP(n)-1

=EXP(5%)-1

=5.13%

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Answer 2

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