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
reasons why we use statistics and examples of why?
what is 9/8
Solving Trig Equations with Calculators, Part II : Since this document is also being prepared for viewing on the web we split this section into two parts to keep the size of the
Example of inflection point Determine the points of inflection on the curve of the function y = x 3 Solution The only possible inflexion points will happen where
How many people ca fi in a small cars without seats?
how to work out consumer arithmetic?
L'Hospital's Rule Assume that we have one of the given cases, where a is any real number, infinity or negative infinity. In these cases we have, Therefore, L'H
A man invests rs.10400 in 6%shares at rs.104 and rs.11440 in 10.4% shares at rs.143.How much income would he get in all??
how to describe the locus of the equation x^2+6xy+y^2+z^2=1 in cylindrical polar coordinates?
2*8
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