ECONOMICS
COMPOUND INTEREST
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
What is the formula for continuously compounded interest?
|
|
A = Pert
|
|
|
A = Pet
|
|
|
Either A or B
|
|
|
None of the above
|
Explanation:
Detailed explanation-1: -Calculating the limit of this formula as n approaches infinity (per the definition of continuous compounding) results in the formula for continuously compounded interest: FV = PV x e (i x t), where e is the mathematical constant approximated as 2.7183.
There is 1 question to complete.