Determine what rate of interest must be paid

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Reference no: EM131389249

1. a) Suppose $2000 is invested at 8% Compounded quarterly for 5 years. How much is accumulated?

b) If instead in Part (a), the interest is compounded continuously, how much more would be accumulated?

2. Determine what rate of interest must be paid so that money will double in 7 years under Continuous compounding.

Reference no: EM131389249

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