How does continuous compounding benefit an investor, Financial Management

Assignment Help:

How does continuous compounding benefit an investor?

The effect of enhancing the number of compounding periods per year is to increase the future value of the investment.  The more often interest is compounded, the larger the future value.  The minimum compounding period is used when we do continuous compounding--compounding that takes place every tiny unit of time (the smallest unit of time imaginable).

 

 


Related Discussions:- How does continuous compounding benefit an investor

Secured versus unsecured bonds, Along the dimension of security, bond...

Along the dimension of security, bonds can be classified into unsecured (straight) bonds and secured (mortgage) bonds. Unsecured bonds have no charge on any speci

Determining the appropriate rates in valuation process, After estimat...

After estimating the cash flows, the next step is to determine the appropriate interest rate that should be used to discount the cash flows. The minimum return re

Decision table, drow decision table of financee managment system

drow decision table of financee managment system

Calculate the total extra annual cost, Question : (A) The following dat...

Question : (A) The following data for the current year relate to a sterile pack purchased by the Apollo Hospital: Annual demand                        90,000 units Ann

Determine the preference shares - equity instruments, Determine the Prefere...

Determine the Preference Shares - Equity Instruments Sandwiched between equity share holders anddebt holders, preference share holders have promise of an assured dividend from

Panera bread company, Analysis of the financial statements and accounting p...

Analysis of the financial statements and accounting policies of "Panera" Bread company, in APA format, containing: Financial Statements -Discuss the main financial statemen

What is price earnings ratio, What is the Price earnings (PE) ratio PE ...

What is the Price earnings (PE) ratio PE = Market share price/EPS (no. of times) PE ratio is the most widely quoted investors 'ratio. It demonstrates market confidence in a

Waht are additional information required in chromex plc, Additional informa...

Additional information required Specification of a time scale for the evaluation. Predict cash flow details year by year for period specified in the time scale. An approxima

Operating lease, what is operating lease, its features, advantages, its app...

what is operating lease, its features, advantages, its applicability

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd