Continuous Compounding Problem

How do I use BA II plus to solve continuous compounding problems. I can’t find the “e” symbol on my calculator. Someone should help.

2nd LN

If given asset for 2010 as $200, and $300 for 2011, the continuous compoounding is calculated as:

(300/200)Ln = 40.55%

It depends on how you want to use it though.

FVN = PV * e ^ (rN)

Its easy to calculate it without the TVM functions.

First solve for exponential. press “e^x” (2ND LN), then press y^x, then press “(”, then write the rate in decimal form (if its 8%, write 0.08), than press *, then input the N, press “)”.

You have just solved for “e ^ (rN)”. Now simply multiply it with PV. and there you go.

Hope it helps.