continuous compounding

Paying interest and the number e

January 24, 2011 | Pat

Suppose I borrow a dollar from you and I’ll pay you 100% interest at the end of the year.  How much money will you have then? $1 * (1 + 1) = $2 What happens if instead the interest is calculated as  50% twice in the year? $1 * (1.5 * 1.5) = $2.25 After … Continue reading →
[Read more...]

Never miss an update!
Subscribe to R-bloggers to receive
e-mails with the latest R posts.
(You will not see this message again.)

Click here to close (This popup will not appear again)