Continuous compounding, Financial Accounting

The excessive frequency of compounding is generally continuous compounding where the interest is compounded immediately. The data for continuous compounding for one year is eAPR here e is 2.71828 that is the base of the natural logarithm. So the future value of an amount which is compounded for n years is:

FV = PV x ekn

Here k is annual percentage rate and ekn is the compound factor.

Posted Date: 4/9/2013 2:30:48 AM | Location : United States







Related Discussions:- Continuous compounding, Assignment Help, Ask Question on Continuous compounding, Get Answer, Expert's Help, Continuous compounding Discussions

Write discussion on Continuous compounding
Your posts are moderated
Related Questions
an asset has a useful life of 4 years.If it is depriciated by diminishing balance method.Its book value at the end of 4 years is 24% of its original cost.Hence the rate of depricia

Bell Mountain Vineyards is considering updating its current manual accounting system with a high-end electronic system. While the new accounting system would save the company mon

The Federal Government The Federal Government is the single largest influence on the U.S. economy. There are two main areas in which the government can impact the economy: fi

1. Kinetics is considering a project that has a NINV of $874,000 and generates net cash flows of $170,000 per year for 12 years. What is the NPV of this project if Kinetics' cost o



difference between carriage inwards and carriage out wards

Perform a business size-up of Sugar and Spice Bakery. 2. Qualitatively analyze the opportunity of closing the storefront to cater events.

Foreign Currency Translation - Restating foreign currency in equivalent dollars; unrealized losses or gains are postponed and carried in Stockholder's Equity until foreign operatio

Recognition of PPE