Problem
Bart wishes to tour the country with his friends. To do this, he is saving money for a bus.
(a) How much money must Bart deposit in a savings account paying 8% nominal annual interest, compounded continuously, in order to have $8000 in 41/2 years?
(b) A friend offers to repay Bart $8000 in 41/2 years if Bart gives him $5000 now. Assuming continuous compounding, what is the nominal annual interest rate of this offer?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.