Practice - Continuous Compounding
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Practice Questions
Test your understanding with targeted questions
What is the formula for calculating future value with continuous compounding?
💡 Hint: Think about how often the interest is added.
Define the term 'continuous compounding.'
💡 Hint: Consider how this compares to regular compounding.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the formula for continuous compounding?
💡 Hint: Look for the use of e in the expression.
Continuous compounding results in more interest than annual compounding.
💡 Hint: Consider how often the interest is added.
1 more question available
Challenge Problems
Push your limits with advanced challenges
An investor places ₹4,000 in a fund with a continuous compounding interest rate of 7% for 6 years. Calculate the future value.
💡 Hint: Use the approximate value of 'e' for precise calculations.
If an amount of ₹3,500 is invested at a continuous compounding rate of 3.5% for 8 years, what is the future value?
💡 Hint: Calculate e raised to the power of your exponent first for accurate results.
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