Читать книгу Fundamentals of Financial Instruments - Sunil K. Parameswaran - Страница 88

Nigel Roberts has deposited $25,000 with Continental Bank for a period of four years at 8% per annum compounded continuously. The terminal balance may be computed as:

Continuous compounding is the limit of the compounding process as we go from annual, to semiannual, on to quarterly, monthly, daily, and even shorter intervals. This can be illustrated with the help of an example.