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Postby chandniwadhwani92 » Fri Feb 20, 2015 6:10 pm

A stock was purchased rs 100 and sold rs 120. calculate investor annual rate of return on a continuously compounded basis

In( 120/100)= 18.23%

How dis 18.23% came
how to calculate dis in BA11

HOW TO CALCULATE effective annual rate in BA 11


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Postby edupristine » Sat Feb 21, 2015 7:32 am

Hi, calculating continuously compounding basis on BA-II calculator is divide 120 by 100. then press "LN" key on left side of "7" . this will give you 18.23%.
For effective annual rate in BA-II stroke in RCC or stated rate for example we take it as 10% or 0.10. now stroke in "2ND" key and then "LN" key. this will give you 1.1052. subtract 1.1052 from 1 which will give you 10.52% or 0.1052.

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