What’s the difference of FV between one using continuous compounding and the other use semi-annual compounding? Is it 2191 – B.
I put A. If I remember correctly, continuously compounding has a lower rate. Using I believe 6.3% returned like 2110; therefore, it had to be A…
Continuous should have a higher rate, compounded continuously vs. just a few times.
Continuous compound = LN (1+HPR), is that right? I don’t have my calculator with me, but if you do LN say 1.075, do you get something smaller?!?!?
2191 sounds right.
I don’t remember what I did, I use P=e^rt though. And only accumulating interest 2x a year vs. continuous is going to make the rate lower than continuous.
continuous compounding …used p=e^rt.
there were two questions with cont. compounding… one in AM and one in PM. One used e* and the other LN.