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What the value of the large reward would be

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Problem 1: Which of the following ways of compounding interest will most closely approximate continuously compounded interest?

Group of answer choices

a. compounded daily

b. compounded biannually

c. compounded weekly

d. compounded monthly

Problem 2: A small reward with a subjective value of 300 is available after 3 units of time. A larger reward with a subjective value of 700 is available after 7 units of time. If discounting occurs hyperbolically, after 2 units of time, the value of the small reward would be , and the value of the large reward would be .

Reference no: EM132727111

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