Suppose you invest $1000 at an interest rate of 6%, compounded annually. Calculate the equivalent interest rate under continuous compounding (find the interest rate r that would give the same result if interest were compounded continuously). Hint: You can consider the situation for 1 year (let t=1).
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Home » Business » Suppose you invest $1000 at an interest rate of 6%, compounded annually. Calculate the equivalent interest rate under continuous compounding (find the interest rate r that would give the same result if interest were compounded continuously).