Enter 3 out of 4 below
Given an accumulated balance of 60000,
principal of 40000,
and interest rate of 18%
Calculate the Time using Continuous Interest
Accumulated Value Formula
Accumulated Value = Pert where e = 2.718281828459
Divide each side of the equation by A
| A | |
| P |
| = |
| Pert |
| P |
Cancel P on the right side:
| ert = | A |
| P |
Take the natural log of both sides
Ln(ert) = Ln(A) - Ln(P)
rt = Ln(A) - Ln(P)
Divide both sides of the equation by r:
| rt | |
| r |
| = |
| Ln(A) - Ln(P) |
| r |
Cancel r on the left side
| t = | Ln(A) - Ln(P) |
| r |
Plugging in our values that we entered, we get:
| t = | Ln(60000) - Ln(40000) |
| 0.18 |
| t = | 11.002099841204 - 10.596634733096 |
| 0.18 |
| t = | 0.40546510810817 |
| 0.18 |
Calculate the total interest earned:
Total Interest Earned = Accumulated Value - Principal
Total Interest Earned = 2.2526 - 40000
Total Interest Earned = -39997.7474
Calculate the interest earned:
| Interest per Period = | Interest Earned |
| t |
| Interest per Period = | -39997.7474 |
Interest per period = -INF
Final Answer
Time using Continuous Interest = 2.2526
You have 2 free calculationss remaining
What is the Answer?
Time using Continuous Interest = 2.2526
How does the Simple and Compound and Continuous Interest Calculator work?
Free Simple and Compound and Continuous Interest Calculator - Calculates any of the four parameters of the simple interest formula or compound interest formula or continuous compound formula
1) Principal
2) Accumulated Value (Future Value)
3) Interest
4) Time.
This calculator has 4 inputs.
1) Principal
2) Accumulated Value (Future Value)
3) Interest
4) Time.
This calculator has 4 inputs.
What 3 formulas are used for the Simple and Compound and Continuous Interest Calculator?
Accumulated Value = Principal * (1 + (interest rate * time))
Accumulated Value = Principal x (1 + interest rate)time
Accumulated Value = Pert
For more math formulas, check out our Formula Dossier
Accumulated Value = Principal x (1 + interest rate)time
Accumulated Value = Pert
For more math formulas, check out our Formula Dossier
What 5 concepts are covered in the Simple and Compound and Continuous Interest Calculator?
- accumulated value
- The total value of an investment, including principal and interest accrued
- future value
- the value of a current asset at a future date based on an assumed rate of growth
- interest
- payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at a particular rate
- principal
- The amount borrowed on a loan, before interest is charged
- simple and compound and continuous interest
Simple and Compound and Continuous Interest Calculator Video
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