(SOLVED) The continuously compounded return of $100 million now to become $200 million in a year is?
Discipline: Finance
Type of Paper: Question-Answer
Academic Level: Undergrad. (yrs 1-2)
Paper Format: APA
Pages: 1
Words: 40
Question
FINANCIAL MATHEMATICS
Please provide and explain how to calculate and get the answer exactly like this, using excel!
Question :
1. The continuously compounded return of $100 million now to become $200 million in a year is?
2. The semiannually-compounded interest rate (j2) which is equivalent to an interest rate of 6% p.a. monthly compounded (j12 is 6%) is?
Expert Solution Preview
| A | B | C | D | E | F | |
| 1 | ||||||
| 2 | 1) | FV | 200 | |||
| 3 | PV | 100 | ||||
| 4 | ||||||
| 5 | Rate | 69.31% | = LN(C2/C3) | |||
| 6 | ||||||
| 7 | 2) | Rate J12 |
