Question 14
Suppose an asset earns an annual interest rate of 8% which is continuously compounded. If asset sells for 100 units today, what will be its value after 2 years?
108.34
116.64
117.35
121.65
Suppose an asset earns an annual interest rate of 8% which is continuously compounded. If asset sells for 100 units today, what will be its value after 2 years?
108.34
116.64
117.35
121.65
Correct answer
117.35
Question 14 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 27 Oct 2024, in the September 2024 term (IIT M DEGREE AN EXAM QDB2 27 Oct 2024). It carries 4 marks.