Answered: 2. If $500 is deposited in an account…

2. If $500 is deposited in an account paying 8.3% annual interest, compounded continuously, how long will it take for the account to increase to $850? Please round the answer to the nearest tenth.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 10PROB

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

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2. If $500 is deposited in an account paying 8.3% annual interest, compounded continuously, how long will it
take for the account to increase to $850?
Please round the answer to the nearest tenth.
years

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