Comments on: A Visual Guide to Simple, Compound and Continuous Interest Rates http://betterexplained.com/articles/a-visual-guide-to-simple-compound-and-continuous-interest-rates/ Learning shouldn't hurt. Let's share the insights that made difficult ideas click. Sun, 6 Jul 2008 23:57:59 +0000 http://wordpress.org/?v=2.0 by: Kalid http://betterexplained.com/articles/a-visual-guide-to-simple-compound-and-continuous-interest-rates/#comment-161919 Thu, 05 Jun 2008 18:02:12 +0000 http://betterexplained.com/articles/a-visual-guide-to-simple-compound-and-continuous-interest-rates/#comment-161919 Hi Andrew, great question. When you have a 7.23% continuous rate, if you start with $1 at the end of the year you have $1 * e^(.0723) = 1.07497778903 ~ 1.075 So 7.5% is your effective "APY", that is your increase from the beginning of the year. Hope this helps! Hi Andrew, great question. When you have a 7.23% continuous rate, if you start with $1 at the end of the year you have

$1 * e^(.0723) = 1.07497778903 ~ 1.075

So 7.5% is your effective “APY”, that is your increase from the beginning of the year. Hope this helps!

]]> by: Andrew http://betterexplained.com/articles/a-visual-guide-to-simple-compound-and-continuous-interest-rates/#comment-161646 Thu, 05 Jun 2008 00:51:39 +0000 http://betterexplained.com/articles/a-visual-guide-to-simple-compound-and-continuous-interest-rates/#comment-161646 I'm a college finite math student and I was wondering if you could help me figure out how to convert a continuous rate into APY. In the way that something like 7.23% at a continuous rate is equal to APY. I'm trying to pick this up through my math book and can not figure it out at all. Thanks I’m a college finite math student and I was wondering if you could help me figure out how to convert a continuous rate into APY. In the way that something like 7.23% at a continuous rate is equal to APY. I’m trying to pick this up through my math book and can not figure it out at all.

Thanks

]]> by: Kalid http://betterexplained.com/articles/a-visual-guide-to-simple-compound-and-continuous-interest-rates/#comment-158575 Tue, 27 May 2008 04:36:20 +0000 http://betterexplained.com/articles/a-visual-guide-to-simple-compound-and-continuous-interest-rates/#comment-158575 Hi Krishna, thanks for the comment! I just fixed up the two typos, appreciate the pointers :). I'm really happy you're finding the site useful, it's nice to interact with people who have a similar take on learning (that it can be about understanding and not just facts). Again, thanks for the comment! Hi Krishna, thanks for the comment! I just fixed up the two typos, appreciate the pointers :) .

I’m really happy you’re finding the site useful, it’s nice to interact with people who have a similar take on learning (that it can be about understanding and not just facts).

Again, thanks for the comment!

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