SOLUTION: How can I find the APY for an APR of 6.7% that is compounded continuously?
I know that yearly it is 6.7, semi-annually it is 6.81 and monthly it is 6.91 but I cannot figure out
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-> SOLUTION: How can I find the APY for an APR of 6.7% that is compounded continuously?
I know that yearly it is 6.7, semi-annually it is 6.81 and monthly it is 6.91 but I cannot figure out
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Question 947754: How can I find the APY for an APR of 6.7% that is compounded continuously?
I know that yearly it is 6.7, semi-annually it is 6.81 and monthly it is 6.91 but I cannot figure out how to do the continuous. Any help is appreciated! Answer by MathLover1(20850) (Show Source):
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The maximum possible value for the APY is achieved with continuous compounding, that is, N approaches infinity. APY for continuous compounding is calculated by
,
where "" is the mathematical constant .
In your case, APR of % or as decimal rate compounded continuously has an of
%.
