SOLUTION: Find the effective rate of interest for 7​% compounded continuously.

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Question 1153385: Find the effective rate of interest for 7​% compounded continuously.
Answer by ikleyn(52794) About Me  (Show Source):
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Find the effective growing factor value of this account for 1 year.


It is  e%5E%280.07%2A1%29 = 2.72828%5E0.07 = 1.072784.


Hence, equivalent effective rate of interest for this account is 0.073 = 7.3% (approximately) per year.    ANSWER