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October 24, 2014

October 24, 2014

Posted by **annonymous** on Sunday, September 19, 2010 at 9:31am.

- calculus -
**MathMate**, Sunday, September 19, 2010 at 9:46amWe calculate the amount after t=1 year at rate r under continuous compounding, and equate it to 1.078:

1.078=1*e^{rt}

take natural log on both sides:

ln(1.078)=r*1

r=ln(1.078)

=0.07511

or 7.511% p.a.

- calculus -
**annonymous**, Sunday, September 19, 2010 at 9:11pmthanks

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