document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1072609>Question 1072609</A>: <I><SPAN STYLE=\"word-break: break-all;\"> . Determine the effective interest rate (APR) if the nominal rate is 7% compounded continuously </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #687570 by </B><A HREF=/tutors/aboutme.mpl?userid=jorel1380><B>jorel1380(3719)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=jorel1380><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=jorel1380><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=687570\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> The formula for continuous compounding is :future value=Principal x e^(yearly rate). So for 7%, we get: e^.07=1.072508181254. So:<BR>\n" );
document.write( "FV=P x 1.07250818254<BR>\n" );
document.write( "FV/P=1.07250818254<BR>\n" );
document.write( "1.07250818254-1=.07250818254, or an effective interest rate of 7.250818254%. &#9786;&#9786;&#9786;&#9786; </SPAN>\n" );
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