how to derive x (e to the power of x) via calculator instructions if other factors are known in exponential compounding

asma.s.sayed
Posts: 2
Joined: Mon Apr 06, 2015 11:35 am

how to derive x (e to the power of x) via calculator instructions if other factors are known in exponential compounding

Postby asma.s.sayed » Sat Apr 25, 2015 6:51 am

If the stock’s initial price is $30 & its year-end price is $35, then its continuously compounded annual rate of return is:
A.15.4%
B.14.5%
C.16.4%

The answer in notes is A. 15.4%.

Please explain how this is derived?

Also, does continuously compounded annual rate indicate the use of exponential formula??

If yes, please explain how to derive x (e to the power of x) via calculator (instructions) if other factors are known in continuously compounding rate (exponential formula)?

edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

Re: how to derive x (e to the power of x) via calculator instructions if other factors are known in exponential compound

Postby edupristine » Mon Apr 27, 2015 9:26 am

Can you tell the source of your question???


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