Excel Companion Chapter 3 section 4

Excel Companion Chapter 3 Section 4
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Continuous Compounding	*TVM1.xls*

Open the sheet for Continuous Compounding in TVM1.xls.Q

TVM1.xls.-Continuous

QUESTIONS:

1.	Explain why the chart appears to show the graphs of only two function instead of three. Use the e^x key on your calculator or the EXP function in Excel to determine the future value of $100,000 in five years under a nominal rate of 5.90%.
	a) compounded daily.
	b) compounded continuously.
	c) To the nearest dollar, by how much does your answer to b) exceed your answer to a).

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