money of the future Knowledge

We can use the formula for calculating the final value of compound interest to calculate the final increase under this continuous growth situation. The following are the specific steps:&=1.01^{240}Step 1: Review the formula of compound interest final value.

Substituting r = 0.01 and n = 240 into the above formula, we can get:Step 2: Substitute data for calculation.The following is to calculate the increase of 240 trading days according to the daily increase of 2%, and calculate it through the calculator, 1.02 {240} \ approximate 115.8887.

Substituting r = 0.01 and n = 240 into the above formula, we can get:Substituting r = 0.01 and n = 240 into the above formula, we can get:&=1.01^{240}