The excessive frequency of compounding is generally continuous compounding where the interest is compounded immediately. The data for continuous compounding for one year is e^APR 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 e^kn

Here k is annual percentage rate and e^kn is the compound factor.

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

Ask an Expert

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

Write your message here..

Related Questions

Case study, It is the month of april for rand company a producer of gold an... It is the month of april for rand company a producer of gold and silver commemorative medallions. Rand company has one job, job A a special minting of 1000 gold medallions which st

What should Peter do? Suggest alternative courses of action, Peter has wor... Peter has worked for five years as an assistant accountant for a large garage and vehicle repair workshop. In the past two weeks he has noticed that one of the managers, Simon, ha

Determine the accounting aspects of business, Determine the accounting aspe... Determine the accounting aspects of business Accounting scandals can have a profound effect on all those connected with business. Enron scandal, for instance, ultimately led t

Property, Property, plant and equipment Normal 0 fals... Property, plant and equipment Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4

Calculate the claim under insurance policy, Calculate the claim under insur... Calculate the claim under insurance policy: 1) What do policy limits of 200/300/100 on an automobile insurance policy mean?Your automobile insurance policy contains policy lim

Analysis of the financial results, An introduction to the company, which fo... An introduction to the company, which focuses on the context in which the company operates: • Ownership, development and location; • Resources, processes and employment; •

Trust accounts-breach of law-trusts accounts, TRUST ACCOUNTS (a) Obje... TRUST ACCOUNTS (a) Object of trust accounts : To demonstrate that the trust funds have been applied in accordance with the trust instrument; To give details of tra

The balance of arndt''s retained earnings as of march 31, On December 31, 2... On December 31, 2010, the stockholders' equity section of Arndt, Inc., was as follows: Common stock, par value $10; authorized 30,000 shares; issued and outstanding 9,000 shares $

structural programming languages in industry today, Write  the advantages ... Write  the advantages and drawbacks of both the structured and object-oriented (OO) paradigm in programming. Describe the perceived preference of OO languages over the more structu

Net streams of payments, Swap - Financial contract in which 2 parties agree... Swap - Financial contract in which 2 parties agree to exchange net streams of payments over a specified period. Payments are normally determined by applying different indices (for