What is the present value of the future receipt

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Reference no: EM131338865

1. What is the future value of $10,000 invested for two years at a nominal interest rate of 12 percent, compounded continuously?

2. You expect to receive $5,000 in five years. What is the present value of this future receipt at the continuously discounted rate of 12 percent?

3. The nominal rate of interest on a bank CD is 8 percent. If compounding occurs continuously, what is the effective annual rate?

Reference no: EM131338865

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