Question Nine
Mr West decides to deposit $5000 in a BankEast Ltd accountthat pays 8% p.a. continuously compounded. What will be his accountbalance in five years?
Question Ten
Norton Industries Pty Ltd is looking at investing in ProjectX that is expected to generate the following cash flows each yearfor six years.
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 |
| $1 million | $1.5 million | $2 million | $2.5 million | $3 million | $3.5 million |
Suppose similar investments are paying a return of 10% pacompounded semi-annually. How much should the Project X cost NortonIndustries?
Please show works, don't use excel.
