QUANT

azharmohammad
Posts: 5
Joined: Fri Aug 05, 2016 5:52 am

QUANT

Postby azharmohammad » Tue Oct 04, 2016 11:08 am

How this value has arrived 1.173511 in the second last step of this example in continuous compounding?
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edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

Re: QUANT

Postby edupristine » Wed Oct 05, 2016 10:18 am

Hi Azahar
As we know that the value of e is 2.7182818 and here in this Question you have to solve the equation
= 10,000e^0.16
=10,000(2.7182818)^0.16
so the value of (2.7182818)^0.16 is 1.173511


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