![\"\"](\"/test/fckeditor/editor/plugins/fckeditor_wiris/integration/showimage.php?formula=fd8e30aca79363e9bd9f574296e7247b.png\")
of an investment earning an annual interest rate r when compounded continuously is ![\"\"](\"/test/fckeditor/editor/plugins/fckeditor_wiris/integration/showimage.php?formula=ebe10d214ef04b8e93056321b44ad661.png\")
. Step 1 :
\Effective rate of interest:
\The effective rate of interest of an investment earning an annual interest rate r when compounded continuously is .
Step 2 :
\The rate of interest is ![\"\"](\"/test/fckeditor/editor/plugins/fckeditor_wiris/integration/showimage.php?formula=b6946ec7126a3f8c91c7b4846225fa0c.png\")
.
Substitute ![\"\"](\"/test/fckeditor/editor/plugins/fckeditor_wiris/integration/showimage.php?formula=6b2c2b6cbf80ece6ef95d9771bd0aef0.png\")
in above equation.
![\"\"](\"/test/fckeditor/editor/plugins/fckeditor_wiris/integration/showimage.php?formula=fa5c2d74a58ad94d9cf3291cfbc1b215.png\")
Solution :
\The effective rate of interest is ![\"\"](\"/test/fckeditor/editor/plugins/fckeditor_wiris/integration/showimage.php?formula=f520f428adb37a5561b9dba3a6f20f63.png\")