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:If it rises by 1% or 2% every day, how much will it increase in 240 trading days a year?Therefore, the daily increase is 2%, and after 240 trading days, the increase is about 11,488.87 \%.
1.01 {240} \ approximate 10.8926 is calculated by a calculator.&=1.01^{240}
Step 1: Review the formula of compound interest final value.Substituting r = 0.01 and n = 240 into the above formula, we can get:&=1.01^{240}
Strategy guide
12-14
Strategy guide
12-14