Unformatted text preview: 8. (10 marks) The three following investments are unrelated (thus, each part of this question will be marked entirely independently) . Find the per annum rate of return continuously compounded for each of the following investments. (iv) Invest $105 today and receive one payment of $220 in exactly 37 months. (v) Invest $10,000 today and receive $90 per month indefinitely, with the first payment immediately received. (vi) Invest $5,000 today and receive payments every quarter indefinitely. The payments grow at the rate of 2% per quarter. In other words, each payment is 2% greater than the previous. The first payment is $100 and will be received immediately....
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This note was uploaded on 02/10/2011 for the course BUS 312 taught by Professor Alan during the Spring '03 term at Simon Fraser.
- Spring '03