An investment was purchased for $2985.After seven months this investment was worth $3245.What is the continuously compounded return on the investment over the seven-month period?

Name: An investment was purchased for $2985.After seven months this investment was worth $3245.What is the continuously compounded return on the investment over the seven-month period?
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Quizplus · Accepted Answer

Using equation 1.5,page 14,the continuously compounded return over the seven-month period is r = ln(3245/2985)= 0.0835 or 8.35%.

An Investment Was Purchased for $2985