A promissory note will pay $52,000 at maturity 8 years from now. If you pay $25,000 for the note now, what rate compounded continuously would you earn? The investment would earn about compounded continuously (Round to three decimal places as needed)

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
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A promissory note will pay $52,000 at maturity 8 years from now. If you pay $25,000 for the note now, what rate compounded continuously would you earn?
The investment would earn about % compounded continuously
(Round to three decimal places as needed.)
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Transcribed Image Text:A promissory note will pay $52,000 at maturity 8 years from now. If you pay $25,000 for the note now, what rate compounded continuously would you earn? The investment would earn about % compounded continuously (Round to three decimal places as needed.) CODE
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