Explore BrainMass

Explore BrainMass

    Continuously compounding

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Which amounts represents the end value of investing $80,000 for 3 years at a continuously compounded rate of 12%?

    I am not sure how to calculate a problem which has continuous compounding - I know you have to use the e function, but I do not understand or know how.. Can I just substitute the value of e into the forumla?

    © BrainMass Inc. brainmass.com June 3, 2020, 6:32 pm ad1c9bdddf

    Solution Preview

    With continuous compounding the formula is
    Future value = ...

    Solution Summary

    The expert examines continuously compounding values of investing.