Modern Finance GrowthFactorContinuous

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GrowthFactorContinuous

Returns what one unit grows to over a number of years with continuous compounding.

Syntax

GrowthFactorContinuous( continuousRate, years )

Examples

#import "std/money"
using money

'' exp( r * t ) -- continuous compounding, the limit of compounding ever
'' more often.  Double kernel.
dim as Decimal r = DecimalParse( "0.05" ).Value( )

print GrowthFactorContinuous( r, 1.0 ).Value( ).ToStringFixed( 10 )   '' 1.0512710964
print GrowthFactorContinuous( r, 0.0 ).Value( ).ToStringFixed( 10 )   '' 1.0000000000

'' Continuous always beats any discrete frequency at the same nominal
'' rate, which is what "the limit" means.
print ( GrowthFactorContinuous( r, 1.0 ).Value( ) > _
        GrowthFactor( RatePerPeriod( r, COMPOUND_DAILY_365 ).Value( ), 365 ).Value( ) )  '' true

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Library: Finance
Category: Finance
Documented under: Nothing Becomes A Keyword
Source: pkg/std/money/fincore.tiko in the tiko repository.