Question 1072609
The formula for continuous compounding is :future value=Principal x e^(yearly rate). So for 7%, we get: e^.07=1.072508181254. So:
FV=P x 1.07250818254
FV/P=1.07250818254
1.07250818254-1=.07250818254, or an effective interest rate of 7.250818254%. &#9786;&#9786;&#9786;&#9786;