Future Value with Continuous Compounding Solution

STEP 0: Pre-Calculation Summary
Formula Used
Future Value with Continuous Compounding = Present Value*ln(Interest*Number of Compounding Periods)
FVCC = PV*ln(I*ncp)
This formula uses 1 Functions, 4 Variables
Functions Used
ln - Natural logarithm function (base e), ln(Number)
Variables Used
Future Value with Continuous Compounding - Future Value with Continuous Compounding refers to the process of calculating interest or growth continuously over time, rather than at discrete intervals.
Present Value - The present value of the annuity is the value that determines the value of a series of future periodic payments at a given time.
Interest - Interest is the charge for the privilege of borrowing money, typically expressed as an annual percentage rate.
Number of Compounding Periods - Number of Compounding Periods refers to how many times the interest is compounded within a given time frame.
STEP 1: Convert Input(s) to Base Unit
Present Value: 10 --> No Conversion Required
Interest: 7 --> No Conversion Required
Number of Compounding Periods: 3 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
FVCC = PV*ln(I*ncp) --> 10*ln(7*3)
Evaluating ... ...
FVCC = 30.4452243772342
STEP 3: Convert Result to Output's Unit
30.4452243772342 --> No Conversion Required
FINAL ANSWER
30.4452243772342 30.44522 <-- Future Value with Continuous Compounding
(Calculation completed in 00.004 seconds)

Credits

Created by Vishnu K
BMS College of Engineering (BMSCE), Bangalore
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9 Future value Calculators

Future Value of Growing Annuity
Go Future Value of Growing Annuity = Initial Investment*((1+Rate per Period)^(Number of Periods)-(1+Growth Rate)^(Number of Periods))/(Rate per Period-Growth Rate)
Annuity Due for Future Value
Go Annuity Due Future Value = Payment Made in Each Period*((1+Rate per Period)^(Number of Periods)-1)/(Rate per Period)*(1+Rate per Period)
Future Value of Present Sum given Compounding Periods
Go Future Value = Present Value*(1+(Rate of Return/Compounding Periods))^(Compounding Periods*Number of Periods)
Future Value of Ordinary Annuities and Sinking Funds
Go Future Value of Ordinary Annuity = Cashflow per Period*((1+Rate per Period)^(Total Number of Times Compounded)-1)/Rate per Period
Future Value with Continuous Compounding
Go Future Value with Continuous Compounding = Present Value*ln(Interest*Number of Compounding Periods)
Future Value of Annuity
Go Future Value of Annuity = (Monthly Payment/Interest Rate)*((1+Interest Rate)^Number of Periods-1)
Future Value of Present Sum given Number of Periods
Go Future Value = Present Value*exp(Rate of Return*Number of Periods)
Future Value of Lumpsum
Go Future Value of Lumpsum = Present Value*(1+Interest Rate per Period)^Number of Periods
Future Value of Present Sum given Total Number of Periods
Go Future Value = Present Value*(1+Interest Rate)^Total Number of Periods

Future Value with Continuous Compounding Formula

Future Value with Continuous Compounding = Present Value*ln(Interest*Number of Compounding Periods)
FVCC = PV*ln(I*ncp)

What is Future Value with Continuous Compounding?

Continuous compounding is often used in theoretical models and in situations where interest is compounded very frequently, such as in certain financial derivatives or when dealing with very short time periods. However, it's worth noting that in real-world scenarios, compounding is typically done at discrete intervals, such as annually, quarterly, or monthly, rather than continuously.

How to Calculate Future Value with Continuous Compounding?

Future Value with Continuous Compounding calculator uses Future Value with Continuous Compounding = Present Value*ln(Interest*Number of Compounding Periods) to calculate the Future Value with Continuous Compounding, The Future Value with Continuous Compounding formula is defined as the process of calculating interest or growth continuously over time, rather than at discrete intervals. Future Value with Continuous Compounding is denoted by FVCC symbol.

How to calculate Future Value with Continuous Compounding using this online calculator? To use this online calculator for Future Value with Continuous Compounding, enter Present Value (PV), Interest (I) & Number of Compounding Periods (ncp) and hit the calculate button. Here is how the Future Value with Continuous Compounding calculation can be explained with given input values -> 30.44522 = 10*ln(7*3).

FAQ

What is Future Value with Continuous Compounding?
The Future Value with Continuous Compounding formula is defined as the process of calculating interest or growth continuously over time, rather than at discrete intervals and is represented as FVCC = PV*ln(I*ncp) or Future Value with Continuous Compounding = Present Value*ln(Interest*Number of Compounding Periods). The present value of the annuity is the value that determines the value of a series of future periodic payments at a given time, Interest is the charge for the privilege of borrowing money, typically expressed as an annual percentage rate & Number of Compounding Periods refers to how many times the interest is compounded within a given time frame.
How to calculate Future Value with Continuous Compounding?
The Future Value with Continuous Compounding formula is defined as the process of calculating interest or growth continuously over time, rather than at discrete intervals is calculated using Future Value with Continuous Compounding = Present Value*ln(Interest*Number of Compounding Periods). To calculate Future Value with Continuous Compounding, you need Present Value (PV), Interest (I) & Number of Compounding Periods (ncp). With our tool, you need to enter the respective value for Present Value, Interest & Number of Compounding Periods and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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