\end{align*}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:
This means that after 240 trading days, the overall increase multiple is about 10.8926 times, and the increase is (10.8926-1) \times 100\% = 989.26\%.F&=(1 + 0.01)^{240}\\F&=(1 + 0.01)^{240}\\
Step 2: Substitute data for calculation.Step 1: Review the formula of compound interest final value.&=1.01^{240}
Strategy guide
Strategy guide 12-13
Strategy guide