Present Value- With Continuous Compounding
PVcont.comp=Cer⋅tPVcont.comp=Cer⋅t
Cash Flow(C)Cash Flow(C) | ||
Rate(r)Rate(r) | ||
Time(t)Time(t) | ||
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UUID | b0700fa6-08f7-11e4-b7aa-bc764e2038f2 |
This formula is used to calculate the current value of a future amount that has earned at a continuously compounded rate , based on the concept of time value of money, present value, and continuous compounding.
Where
- C = Cash Flow
- r = Rate
- t = time
This equation, Present Value- With Continuous Compounding, is used in 1 page
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