Lecture Notes on Time Value of Money

Example: What is $1,000 worth in one year if compounded at 12% continuously. FV = $1,000 x e.12 = $1,000 x 1.127497 = $1,127.50 This is $.03 more than daily compounding. Try this on your calculator. Find the ex button. e.12 = 1.12749 ................
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