How to calculate continuously compound interest

2,178 views

Published on

A brief presentation on how to calculate continuously compounded interest. You have to know the principal, the annual rate and the time in years.

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,178
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
19
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

How to calculate continuously compound interest

  1. 1. Continuously Compound Interest Financial Math
  2. 2. Continuously Compound Interest <ul><li>Find the amount of an investment if $40,000 is invested at 6.5% continuously compounded for five years. </li></ul>
  3. 3. Continuously Compound Interest <ul><li>Find the amount of an investment if $ 40,000 is invested at 6.5 % continuously compounded for five years . </li></ul>
  4. 4. Continuously Compound Interest <ul><li>p = principal </li></ul><ul><li>e = 2.7183 </li></ul><ul><li>r = nominal rate per year </li></ul><ul><li>t = time in years </li></ul><ul><li>A = Amount </li></ul>
  5. 5. Continuously Compound Interest <ul><li>Find the amount of an investment if $ 40,000 is invested at 6.5 % continuously compounded for five years . </li></ul><ul><li>p (principal) = 40,000 </li></ul><ul><li>r (nominal rate per year) = 6.5% </li></ul><ul><li>t = 5 </li></ul>
  6. 6. Compound Interest Calculator <ul><li>For an online calculator for compound interest and continuously compound interest, see: </li></ul><ul><li>matrixlab - examples.com / calculate - compound - interest.html </li></ul>
  7. 7. Compound Interest Calculator
  8. 8. Compound Interest Calculator
  9. 9. Compound Interest Calculator <ul><li>For an online calculator for compound interest and continuously compound interest, see: </li></ul><ul><li>matrixlab - examples.com / calculate - compound - interest.html </li></ul>

×