Constant growth model with yearly compounding

Reference no: EM1336086

The solution to continuous compounding

Employment (1000)
Occupation 1998 2008
Bill Collectors 311 420
Computer engineers 299 622
Physicians assistants 66 98
Respiratory therapists 86 123
Systems analysts 617 1194

A. Use a spreadsheet, calculate the 10-year growth rate forecast using the constant growth model with annual compounding, and the constant growth model with continuous compounding for each occupation.

B. Compare your answers and discuss any differences.

Reference no: EM1336086

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