An effective annual interest rate of 35% has been determined with continuous compounding. What is the nominal interest rate that was compounded continuously to get this number?
An effective annual interest rate of 35% has been determined with continuous compounding. What is the nominal interest rate that was compounded continuously to get this number?
0.35 = e^{r} − 1 e^{r} = 1.35
r = ln(1.35)
\underline{r} = 30%