A bank proudly announces that it has changed its interest, Ask an Expert

Economics

A bank proudly announces that it has changed its interest computation method to continuous compounding. Now $2000 left in the bank for 9 years will double to $4000.

(a) What nominal interest rate, compounded continuously, is the bank paying?

(b) What effective interest rate is it paying?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M92634787

Have any Question?Write your Review or question?

Related Questions in Business Economics

Dom grady just won the lottery and will receive annuity

Dom Grady just won the lottery and will receive annuity payments of $15,000 for each of the next 20 years, starting today (January 1, 2017). What is the present value of the annuity payments as of today, assuming a 8% in ...

How will the dollar devaluation affect businesses and

How will the dollar devaluation affect businesses and consumers in the twin cities of El Paso, the United States and Juarez, Mexico?

A fair coin is flipped 3 times the toss results are

A fair coin is flipped 3 times. The toss results are recorded on separate slips of paper (writing "H" if Heads and "T" if Tails), and the 3 slips of paper are thrown into a hat. a) Find the probability that all 3 tosses ...

What is bitcoin and why does it have value is bitcoin money

What is Bitcoin and why does it have value? Is Bitcoin money? Explain why it does or does not satisfy the three conditions it must meet to be considered money.

Question1 indirect business taxes refer todepreciation

QUESTION1 (Indirect business taxes refer to) depreciation expenses. sales and local taxes paid by business. payments for low-skilled labor. dividend taxes paid by the corporation. QUESTION 2 (Labor productivity increases ...

If the coefficient of determination is 0738 what percentage

If the coefficient of determination is 0.738, what percentage of the data about the regression line is unexplained?

What are the four main points of difference in terms of

What are the four main points of difference in terms of utility, value, rationality, and equilibrium between the classical and neoclassical schools of thought? Briefly describe each one.

If all countries eliminated all barriers to immigration

If all countries eliminated all barriers to immigration, would global economic growth increase? Why or why not?

Malcolm moore single had medical expenses of 5000 last year

Malcolm Moore, single, had medical expenses of $5,000 last year. His AGI last year was $30,000. He was reimbursed $4,500 this year by his insurance company. Malcolm claimed the standard deduction last year. What amount m ...

One study based on responses from 1 013 randomly selected

One study, based on responses from 1, 013 randomly selected teenagers, concluded that 43% of teenagers cite grades that their greatest source of pressure. Use a 0.05 significance level to test the claim that fewer than h ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert