A hypothetical amount 100t grows continuously at rate ln2 per year. Find its value after one year.
- Rates are decimals; all values are idealized models with the stated period and compounding rule.
Skills and prerequisite lessons
Working and explanation
BUILD THE REASONING
Hint 1
Hint 2
Worked solution
Express the cash flow or proportional relation before calculating.
Apply the stated relation and retain its conditions.
A continuous rate is used in an exponential, not in the annual discrete-compound factor.
The requested value is 800.
Checks and common pitfalls: A continuous rate is used in an exponential, not in the annual discrete-compound factor.
Think first. Reveal a hint when the class is ready.