Chapter 3 Time Value of Money

Continuous compounding. 1.3.1 If the compounding frequency is taken to the limit we say that there is continuous compounding. When the number of compounding periods approaches infinity the future value is found by. FV = P × ein. Where e is the value of the exponential function. This is set as 2.71828. 1.3.2 EXAMPLE 3 ................
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