Question

Asked Sep 20, 2019

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Step 1

(a)

Interest Rate = 3.3%

Type of Compounding = Monthly

Number of Compounding = 12

Assumption:

Present Value of Investment = $1

Future Value of Investment = $2

Calculation of time period required to double the investment using excel NPER function:

To open the "NPER function" window - MS-Excel --> Formulas --> Financials --> NPER.

Step 2

(b)

Interest Rate = 7% or 0.07

Type of Compounding = Continuously

Assumption:

Present Value of Investment = $1

Future Valu...

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