The way I use to remember is "e" is used to convert for EAR and "ln" is continuous. For instance, you want to convert 7% compounded continuously to EAR On Calci, simply put the raw factor of 7 that is 0.07 and press "2ND" ("e^x" or "ln" key), deduct 1 from the result. (Note: when converting throughRead more
The way I use to remember is “e” is used to convert for EAR and “ln” is continuous.
For instance, you want to convert 7% compounded continuously to EAR
On Calci, simply put the raw factor of 7 that is 0.07 and press “2ND” (“e^x” or “ln” key), deduct 1 from the result.
(Note: when converting through “e^x” we dont use factorial (1+r) but only r. We only make factorial while converting to continuous using “ln”)
ECO BUSINESS CYCLE
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convert continuous return into effective return
The way I use to remember is "e" is used to convert for EAR and "ln" is continuous. For instance, you want to convert 7% compounded continuously to EAR On Calci, simply put the raw factor of 7 that is 0.07 and press "2ND" ("e^x" or "ln" key), deduct 1 from the result. (Note: when converting throughRead more
The way I use to remember is “e” is used to convert for EAR and “ln” is continuous.
For instance, you want to convert 7% compounded continuously to EAR
On Calci, simply put the raw factor of 7 that is 0.07 and press “2ND” (“e^x” or “ln” key), deduct 1 from the result.
(Note: when converting through “e^x” we dont use factorial (1+r) but only r. We only make factorial while converting to continuous using “ln”)
You can Practice this table. Hope it helps.
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