Question

In: Math

An investment pays 8% interest compounded continuously. If money is invested steadily at the rate of...

An investment pays 8% interest compounded continuously. If money is invested steadily at the rate of

​$16,000​, how much time is required until the value of the investment reaches $160000?

2) Given f'(t)=-0.5t-e^-2t, compute f(5)-f(3)

3) Find the area under the given curve over the indicated interval.

y= 6x^2+x+3e^x/3; x=1 to x=5

Solutions

Expert Solution


Related Solutions

1. You have invested $48,000 in a security that will earn a continuously compounded rate of...
1. You have invested $48,000 in a security that will earn a continuously compounded rate of 12% for a period of 15 years. What amount will the investment grow to by the end of the investment? 2. Your bank is offering you an investment that will return $50,000 in exactly 16 years. The discount rate is 5% per year with continuous compounding/discounting. What is the most you should pay for this investment? 3. A bank offers you a credit card...
A five-year bond with a yield of 11% (continuously compounded) pays an 8% coupon at the...
A five-year bond with a yield of 11% (continuously compounded) pays an 8% coupon at the end of each year. a) What is the bond’s price? b) What is the bond’s duration? c) Use the duration to calculate the effect on the bond’s price of a 0.2% decrease in its yield. d) Recalculate the bond’s price on the basis of a 10.8% per annum yield and verify that the result is in agreement with your answer to (c). **Can you...
Suppose that $6,100 is invested at 4.3% annual interest rate, compounded monthly. How much money will...
Suppose that $6,100 is invested at 4.3% annual interest rate, compounded monthly. How much money will be in the account in (A) 11 months? (B) 9 years? (A) Amount after 11 months: $ (Round to the nearest cent)
A stock sells for $84 and pays a continuously compounded 3% dividend. The continuously compounded risk-free...
A stock sells for $84 and pays a continuously compounded 3% dividend. The continuously compounded risk-free rate is 5%. a. What is the price of a pre-paid forward contract for one share to be delivered six months (.5 year) from today? b. What is the price of a forward contract that expires six months from today? c.Describe the transactions you would undertake to use the stock and bonds (borrowing and lending) to construct a synthetic long forward contract for one...
(a) Find a stock that pays a dividend and estimate the continuously compounded dividend payment rate...
(a) Find a stock that pays a dividend and estimate the continuously compounded dividend payment rate (for example, .02). Using the Black/Scholes option pricing model (including dividends), estimate the price of an at the money call option and put option that have the same exercise price and maturity date. Assume r=.005 and use the appropriate S0, t, K. For volatility, use 30%. (b) Evaluate how well the Black/Scholes model worked by comparing the results to the midpoints of the bid-ask...
A futures contract on a share, which pays dividend at a continuously compounded rate of 3%,...
A futures contract on a share, which pays dividend at a continuously compounded rate of 3%, is written when the share has a price of $790, and the continuously compounded risk-free interest rate is 5%. The contract is priced at $800 and expires in 3 months. (b) Demonstrate how you could execute an arbitrage transaction and calculate arbitrage profit. [5]
If money is invested for 8 years at a simple interest rate of 8.6% per annum,...
If money is invested for 8 years at a simple interest rate of 8.6% per annum, the nominal interest rate per annum, compounding monthly, is (as a percentage rounded to three decimal places; no % sign):
The Bank quotes the interest rate on loans as 12% per annum continuously compounded. The interest...
The Bank quotes the interest rate on loans as 12% per annum continuously compounded. The interest is actually paid monthly on a $6911 loan. What is the interest payment (in $) of this loan per month?
The IF500 stock index pays no dividends. The continuously compounded risk free rate is 5%. The...
The IF500 stock index pays no dividends. The continuously compounded risk free rate is 5%. The spot price of the index is 2,016.00. What is the 18-month forward price of the IF500 stock index? The RP3000 stock index has a current price of 1,898.60. The two-year forward price of the index is 2,016.00. The continuously compounded risk-free rate is 5%. The stock index pays dividends continuously at a rate of δ per year. Determine δ.
If a nominal interest rate of 10​% is compounded​ continuously, determine the unknown quantity in each...
If a nominal interest rate of 10​% is compounded​ continuously, determine the unknown quantity in each of the following​ situations: a. What uniform EOY amount for 11 years is equivalent to ​$8 comma 0008,000 at EOY 11​? b. What is the present equivalent value of ​$900 per year for 15 ​years? c. What is the future equivalent at the end of the fifth year of ​$246 payments made every six months during the five ​years? The first payment occurs six...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT