ฝัง
- เผยแพร่เมื่อ 10 ก.พ. 2025
- www.EngineerInT... In this tutorial, we will reinforce your understanding of Continuous Compounding. We will begin by defining Continuous Compounding, discuss the general work flow, and then run through an example of something we may see on the exam.
Hello,
In the continous compounding problem where the 8% was compounded continuously for a year, the compounding period was stated as 365 days and this value (365) was not multiplied by the interest rate (8%). However in another example where 1.6% was compounded monthly, the compounding period was given as 12 (clearly understood) however the interest rate was adjusted to 19.2 annually (product of m and i). this is not clearly understood.
Also, as a follow up to this question, what if the interest rate of 1.6% was compounded quarterly , the compounding period "m" , will thus be 4 (correct?) if so, will the interest rate also be adjusted to the product of "m" and "i"?
Thanks
can you show how to interpolate as well? would be great help!