*You are planning to purchase your first electric car worth $65,000 right after your graduation (in 4 years). Compute the nominal annual interest rate required for a $35,000 investment to grow to $65,000 in 4 years if interest is compounded continuously.

*You are planning to purchase your first electric car worth $65,000 right after your graduation (in 4 years). Compute the nominal annual interest rate required for a $35,000 investment to grow to $65,000 in 4 years if interest is compounded continuously.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1QTD

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You are planning to purchase your first electric car worth $65,000 right after your
graduation (in 4 years). Compute the nominal annual interest rate required for a $35,000 investment
to grow to $65,000 in 4 years if interest is compounded continuously.

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