SOLUTION: Find the effective rate of interest for 10​% compounded continuously.

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Question 1153393: Find the effective rate of interest for 10​% compounded continuously.
Answer by ikleyn(52858)   (Show Source): You can put this solution on YOUR website!
.

The growing coefficient (growing factor) in this case is, by the definition


    r =  =  = 1.105171,


where  e = 2.71828 is the base of natural logarithms (the Euler's number).


Thus the equivalent effective rate of interest compounded annually is 10.5%, approximately.

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Yesterday I solved a TWIN problem under this link
https://www.algebra.com/algebra/homework/Percentage-and-ratio-word-problems/Percentage-and-ratio-word-problems.faq.question.1153269.html

https://www.algebra.com/algebra/homework/Percentage-and-ratio-word-problems/Percentage-and-ratio-word-problems.faq.question.1153269.html


This time, I simply copied that solution and changed numbers in it . . .


As I see, you love posting TWIN problems very much . . . (instead of studying on how to solve problems on your own from my samples and templates).



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