Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
If r per annum is the rate at which the principal A is compounded annually, then at the end of k years, the money due is
Q = A (1 + r)k
Suppose compounding is done continuously. i.e. at every instant the principal A is compounded at R per annum. Then,
Q = A eRk
The relationship between R and r is given by the following reasoning:
A (1 + r)k = A eRk
Example
If R = 5.25%, then ln(1 + r) = 5.25% or r = 5.39%
Suppose Rs.100 is being compounded annually at the rate of 10% per annum. What is the future value of Rs.100 at the end of the third year? What is the effective continuously compounded rate of interest? What is the future value of Rs.100 at the end of the third year, using this interest rate?
FV(Rs.100) = 100 x (1.10)3 = 133.1
If r = 0.1, then the continuously compounded rate of interest R is given by
R = ln(1 + 0.1) = 0.0953
FV(Rs.100) = 100 e0.0953 x 3 = 100 x 1.331 = 133.1
A venn diagram is a pictorial representation of the sample space of an experiment. It is usually drawn as a rectangular figure representing the sample space and it cont
If the points for a right angle triangle are XYZ where do I mark the points?
Properties of the Indefinite Integral 1. ∫ k f ( x ) dx = k ∫ f ( x ) dx where k refer for any number. Thus, we can factor multiplicative constants out of indefinite integral
Computation of Covariance Ungrouped Data For a population consisting of paired ungrouped data points {X, Y} where,
Definition: An equation is considered as function if for any x in the domain of the equation (the domain is the entire x's which can be plugged into the equation) the equation wil
Discuss mareketing core concepts analysing how they are used in marketing hospitality product
Brent covered 3 1/5 by a number and got 4 1/2 what number dis he divide by? The answer is either 1 9/16, or 32/45. Which one is the answer, and how did you get it?
what is the LCM of 18, 56 and 104 show working
2-3+=3+-4
Consider an election with 721 voters. A) If there are 5 candidates, at least x votes are needed to have a plurality of the votes. Find x. B) Suppose that at least 73 votes are n
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd