Computing rate of return if continuous compounding


1) Nominal and Real Rates- Consumer prices have been averaging 3.50% in South Korea. If So-Hyun can be paid the nominal rate of return on her investment portfolio of 10.25%, find her real rate of return, supposing continuous compounding?

2) Future Value Problems- Sam has $1,000. He can be paid the annual efficient rate of 5%. Determine the amount he will have in ten years?

3) Present Value Problems- John has determined that she will require $3 million when he retires in 45 years. Present interest rate is 7% (EAR). Determine the amount he requires today to completely fund this goal at that rate?

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Finance Basics: Computing rate of return if continuous compounding
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