Continuous compounding, If you need $37,000 in 12 years,

Continuous compounding

Assignment Help Financial Management

Reference no: EM131896760

1. Continuous Compounding

If you need $37,000 in 12 years, how much will you need to deposit today if you can earn 8 percent per year compounded continuously? (Round your answer to 2 decimal places. (e.g., 32.16))

PV $

2. Continuous Compounding

If you have $1,800 today, how much will it be worth in seven years at 5 percent per year compounded continuously? (Round your answer to 2 decimal places. (e.g., 32.16))

FV $

Reference no: EM131896760

Questions Cloud

What is the arithmetic average annual return over the period : What is the average annualized geometric return over the period? What is the arithmetic average annual return over the period?

Make sharon indifferent between new and old leases : What new lease payment would make Sharon indifferent between the new and old leases?

Used as the underlying asset on exchange option : One share of Stock A is used as the underlying asset on an exchange option, for which the benchmark asset is four shares of a Stock B.

Find the black-scholes price of this call option : The exchange option expires in 1 year. Find the Black-Scholes price of this call option.

Continuous compounding : If you need $37,000 in 12 years, how much will you need to deposit today if you can earn 8 percent per year compounded continuously?

What is initial cost of project including flotation costs : Yesteryear Productions is considering a project with an initial start-up cost of $960,000. What is the initial cost of the project including the flotation costs

What is the company weighted average cost of capital : The corporate tax rate is 35 percent. What is the company’s weighted average cost of capital ?

Acquisition of some new equipment for controlling coal dust : Deep Mining, Inc., is contemplating the acquisition of some new equipment for controlling coal dust that costs $174,000.

Price of put option with the same exercise price : What is the price of a put option with the same exercise price?

User Account

All Pages