Question

Sigmund deposits K at time t = 0. His balance (assuming no deposits or withdrawals) doubles...

Sigmund deposits K at time t = 0. His balance (assuming no deposits or withdrawals) doubles in six years.

(a) What is the annual effective discount rate?

(b) What is the nominal discount rate convertible bi-monthly (once every two months)?

(c) What is the nominal interest rate convertible semi-monthly (twice per month)?

(d) What is the nominal interest rate convertible once every two years?

(e) What is the force of interest?

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