RatedrillContinuous compounding
A time value of money problem from Ratedrill. Solve it with one answer box, with fresh numbers on every attempt and the formula, calculator keystrokes and Excel version in the worked answer, and it is checked the moment you submit.
The task
A fund grows at 2.25% per year, compounded continuously. What does a $1,000 investment grow to in 15 years?
What this problem teaches
The formula: FV = PV × e^(r × t). The TVM keys have no continuous mode. Multiply r × t, press e^x, then multiply by PV.
A hint if you get stuck
Continuous compounding: FV = PV × e^(r × t).
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