Effective rate compounded continuously
Continuous compounding at an interest rate of 100% is unlikely to be used in An effective annual return of 171.8282% produces the final value of $ e million. Imagine the following situation: a bank offers you an effective annual interest of 6 %; a bank offers you a periodic interest rate of 1,5 % per quarter. How would you. Interest rate: (max 20%) Effective interest rate: 5.12%