(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






21)
FV
200



3

PV100



4






5

Rate
69.31%
= LN(C2/C3)


6






7
2)
Rate J12