When i do this sum with continuous compounding I don’t get correct ans.
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Option B?
Calculation for continuously compounding
10,000 +- PV
18,682 FV
5 N
CPT I/Y ( this is effective rate i.e., 13.31%)
Now, for converting it into continuously compounding Ln (1+effective rate)
Ln (1+ 0.1331)
= 0.1250*100
=12.50% (Hence option B)
FV = 10,000* (e^0.125)^5
= 10,000*(e^0.625)
=10,000*1.8682
=18,682