Re: DSE 2013 Paper Discussion

Posted by Dreyfus on May 20, 2014; 10:58am
URL: http://discussion-forum.276.s1.nabble.com/DSE-2013-Paper-Discussion-tp7584703p7590266.html

Hey Neha...the method you used is for discrete compounding formula ie A=P(1+r)ⁿ { n is no of years and the formuale is for annual compounding)
And as per the ques the growth rate is instantaneous ie compounding is continuous, given by A=P*e^(r*t)