Future Value of a Lump Sum with Continuous CompoundingIn the previous section, the Future Value of a lump sum is calculated with a fix number of compounding periods. The Future Value of a Lump Sum with Continuous Compounding means that the Future Value is calculated with infinite number of compounding periods.
Formula of Future Value of a Lump Sum with Continuous Compounding
- PV is Present Value
- r is the interest rate
- n is the period. For example 5 years.
- e is 2.71828
Future Value of an Ordinary Annuity
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