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Interest

The formula for interest compounded annually isMATHwhere MATH

The formula for interest compounded $n$ times per year isMATH

whereMATH

The effective annual yield is given byMATHwhereMATH

The formula for continuously compounded interest is given byMATH

where MATH


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Copyright © 2006 Darel Hardy, Fred Richman, Carol Walker, Robert Wisner. All rights reserved. Except upon the express prior permission in writing, from the authors, no part of this work may be reproduced, transcribed, stored electronically, or transmitted in any form by any method.

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