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Future Value - Continuous Compounding

Last modified by
on
Jul 24, 2020, 6:28:07 PM
Created by
on
Nov 27, 2013, 3:30:23 PM
A(t)=A⋅er⋅t100
A
r
t

This formula provides the future value (A) based on continuously compounded interest at a fixed interest rate.  

INPUTS

The inputs are as follows:

  • A0 -  the initial value prior to compounding interest
  • r - the periodic interest rate input as a percentage; i.e.,  enter 2 for a 2% annual interest rate
  • t -  the number of compounding periods (e.g. years)

NOTES

This equation is based on the formula: A0⋅er⋅t.  The value r is divided by 100 to let the user enter the annual interest rate as a percentage.
This equation, Future Value - Continuous Compounding, is used in 1 page
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