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Future Value with Continuous Compounding Calculator

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Future value Basics of Time Value of Money Present Value

✖The Present Value of the annuity is the value that determines the value of a series of future periodic payments at a given time.ⓘ Present Value [PV]			+10% -10%
✖A Rate of Return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost.ⓘ Rate of Return [%RoR]			+10% -10%
✖Number of Compounding Periods refers to how many times the interest is compounded within a given time frame.ⓘ Number of Compounding Periods [n_cp]			+10% -10%

✖Future Value with Continuous Compounding refers to the process of calculating interest or growth continuously over time, rather than at discrete intervals.ⓘ Future Value with Continuous Compounding [FV_CC]

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Future Value with Continuous Compounding Solution

STEP 0: Pre-Calculation Summary

Formula Used

Future Value with Continuous Compounding = Present Value*(e^(Rate of Return*Number of Compounding Periods*0.01))
FV_CC = PV*(e^(%RoR*n_cp*0.01))
This formula uses 1 Constants, 4 Variables

Constants Used

e - Napier's constant Value Taken As 2.71828182845904523536028747135266249

Variables Used

Future Value with Continuous Compounding - Future Value with Continuous Compounding refers to the process of calculating interest or growth continuously over time, rather than at discrete intervals.
Present Value - The Present Value of the annuity is the value that determines the value of a series of future periodic payments at a given time.
Rate of Return - A Rate of Return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost.
Number of Compounding Periods - Number of Compounding Periods refers to how many times the interest is compounded within a given time frame.

STEP 1: Convert Input(s) to Base Unit

Present Value: 100 --> No Conversion Required
Rate of Return: 4.5 --> No Conversion Required
Number of Compounding Periods: 3 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

FV_CC = PV*(e^(%RoR*n_cp*0.01)) --> 100*(e^(4.5*3*0.01))

Evaluating ... ...

FV_CC = 114.453678435131

STEP 3: Convert Result to Output's Unit

114.453678435131 --> No Conversion Required

FINAL ANSWER

114.453678435131 ≈ 114.4537 <-- Future Value with Continuous Compounding

(Calculation completed in 00.004 seconds)

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< Future value Calculators

Future Value of Present Sum given Compounding Periods

LaTeX Go Future Value = Present Value*(1+((Rate of Return*0.01)/Compounding Periods))^(Compounding Periods*Number of Periods)

Future Value of Annuity

LaTeX Go Future Value of Annuity = (Monthly Payment/(Interest Rate*0.01))*((1+(Interest Rate*0.01))^Number of Periods-1)

Future Value of Present Sum given Number of Periods

LaTeX Go Future Value = Present Value*exp(Rate of Return*Number of Periods*0.01)

Future Value of Present Sum given Total Number of Periods

LaTeX Go Future Value = Present Value*(1+(Rate of Return*0.01))^Number of Periods

Future Value with Continuous Compounding Formula

LaTeX Go

Future Value with Continuous Compounding = Present Value*(e^(Rate of Return*Number of Compounding Periods*0.01))
FV_CC = PV*(e^(%RoR*n_cp*0.01))

What is Future Value with Continuous Compounding?

Continuous compounding is often used in theoretical models and in situations where interest is compounded very frequently, such as in certain financial derivatives or when dealing with very short time periods. However, it's worth noting that in real-world scenarios, compounding is typically done at discrete intervals, such as annually, quarterly, or monthly, rather than continuously.

How to Calculate Future Value with Continuous Compounding?

Future Value with Continuous Compounding calculator uses Future Value with Continuous Compounding = Present Value*(e^(Rate of Return*Number of Compounding Periods*0.01)) to calculate the Future Value with Continuous Compounding, The Future Value with Continuous Compounding formula is defined as the process of calculating interest or growth continuously over time, rather than at discrete intervals. Future Value with Continuous Compounding is denoted by FV_CC symbol.

How to calculate Future Value with Continuous Compounding using this online calculator? To use this online calculator for Future Value with Continuous Compounding, enter Present Value (PV), Rate of Return (%RoR) & Number of Compounding Periods (n_cp) and hit the calculate button. Here is how the Future Value with Continuous Compounding calculation can be explained with given input values -> 114.4537 = 100*(e^(4.5*3*0.01)).

FAQ

What is Future Value with Continuous Compounding?

The Future Value with Continuous Compounding formula is defined as the process of calculating interest or growth continuously over time, rather than at discrete intervals and is represented as FV_CC = PV*(e^(%RoR*n_cp*0.01)) or Future Value with Continuous Compounding = Present Value*(e^(Rate of Return*Number of Compounding Periods*0.01)). The Present Value of the annuity is the value that determines the value of a series of future periodic payments at a given time, A Rate of Return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost & Number of Compounding Periods refers to how many times the interest is compounded within a given time frame.

How to calculate Future Value with Continuous Compounding?

The Future Value with Continuous Compounding formula is defined as the process of calculating interest or growth continuously over time, rather than at discrete intervals is calculated using Future Value with Continuous Compounding = Present Value*(e^(Rate of Return*Number of Compounding Periods*0.01)). To calculate Future Value with Continuous Compounding, you need Present Value (PV), Rate of Return (%RoR) & Number of Compounding Periods (n_cp). With our tool, you need to enter the respective value for Present Value, Rate of Return & Number of Compounding Periods and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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