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Future Value with Continuous Compounding Formula

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Future Value with Continuous Compounding refers to the process of calculating interest or growth continuously over time, rather than at discrete intervals. Check FAQs

FV CC = PV \cdot (e^{%RoR \cdot n cp \cdot 0.01})

FV_CC - Future Value with Continuous Compounding?PV - Present Value?%RoR - Rate of Return?n_cp - Number of Compounding Periods?

Future Value with Continuous Compounding Example

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With units

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Here is how the Future Value with Continuous Compounding equation looks like with Values.

Here is how the Future Value with Continuous Compounding equation looks like with Units.

Here is how the Future Value with Continuous Compounding equation looks like.

114.4537 = 100 \cdot (e^{4.5 \cdot 3 \cdot 0.01})

114.4537 = 100 \cdot (e^{4.5 \cdot 3 \cdot 0.01})

114.4537 = 100 \cdot (e^{4.5 \cdot 3 \cdot 0.01})

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Future Value with Continuous Compounding Solution

Follow our step by step solution on how to calculate Future Value with Continuous Compounding?

FIRST Step Consider the formula

FV CC = PV \cdot (e^{%RoR \cdot n cp \cdot 0.01})

Next Step Substitute values of Variables

∴

FV CC = 100 \cdot (e^{4.5 \cdot 3 \cdot 0.01})

Next Step Prepare to Evaluate

∴

FV CC = 100 \cdot (e^{4.5 \cdot 3 \cdot 0.01})

Next Step Evaluate

∴

FV CC = 114.453678435131

LAST Step Rounding Answer

∴

FV CC = 114.4537

Future Value with Continuous Compounding Formula Elements

Variables

Future Value with Continuous Compounding

Future Value with Continuous Compounding refers to the process of calculating interest or growth continuously over time, rather than at discrete intervals.

Symbol: FV_CC

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Future Value with Continuous Compounding

Present Value

The Present Value of the annuity is the value that determines the value of a series of future periodic payments at a given time.

Symbol: PV

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Present Value

Rate of Return

A Rate of Return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost.

Symbol: %RoR

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Rate of Return

Number of Compounding Periods

Number of Compounding Periods refers to how many times the interest is compounded within a given time frame.

Symbol: n_cp

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Number of Compounding Periods

Other formulas in Future value category

Go Future Value of Annuity

FV A = (\frac{p}{IR \cdot 0.01}) \cdot ({(1 + (IR \cdot 0.01))}^{n Periods} - 1)

Go Future Value of Present Sum given Compounding Periods

FV = PV \cdot {(1 + (\frac{%RoR \cdot 0.01}{C n}))}^{C n \cdot n Periods}

Go Future Value of Present Sum given Total Number of Periods

FV = PV \cdot {(1 + (%RoR \cdot 0.01))}^{n Periods}

Go Future Value of Present Sum given Number of Periods

FV = PV \cdot \exp (%RoR \cdot n Periods \cdot 0.01)

How to Evaluate Future Value with Continuous Compounding?

Future Value with Continuous Compounding evaluator uses Future Value with Continuous Compounding = Present Value*(e^(Rate of Return*Number of Compounding Periods*0.01)) to evaluate the Future Value with Continuous Compounding, The Future Value with Continuous Compounding formula is defined as the process of calculating interest or growth continuously over time, rather than at discrete intervals. Future Value with Continuous Compounding is denoted by FV_CC symbol.

How to evaluate Future Value with Continuous Compounding using this online evaluator? To use this online evaluator for Future Value with Continuous Compounding, enter Present Value (PV), Rate of Return (%RoR) & Number of Compounding Periods (n_cp) and hit the calculate button.

FAQs on Future Value with Continuous Compounding

What is the formula to find Future Value with Continuous Compounding?

The formula of Future Value with Continuous Compounding is expressed as Future Value with Continuous Compounding = Present Value*(e^(Rate of Return*Number of Compounding Periods*0.01)). Here is an example- 114.4537 = 100*(e^(4.5*3*0.01)).

How to calculate Future Value with Continuous Compounding?

With Present Value (PV), Rate of Return (%RoR) & Number of Compounding Periods (n_cp) we can find Future Value with Continuous Compounding using the formula - Future Value with Continuous Compounding = Present Value*(e^(Rate of Return*Number of Compounding Periods*0.01)).

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Future Value with Continuous Compounding Formula

Future Value with Continuous Compounding Example

Future Value with Continuous Compounding Solution

Future Value with Continuous Compounding Formula Elements

Other formulas in Future value category

How to Evaluate Future Value with Continuous Compounding?

FAQs on Future Value with Continuous Compounding

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