Step 1: Review the formula of compound interest final value.\end{align*}F&=(1 + 0.01)^{240}\\
Step 2: Substitute data for calculation.Step 2: Substitute data for calculation.1.01 {240} \ approximate 10.8926 is calculated by a calculator.
&=1.01^{240}Substituting r = 0.01 and n = 240 into the above formula, we can get:The following is to calculate the increase of 240 trading days according to the daily increase of 2%, and calculate it through the calculator, 1.02 {240} \ approximate 115.8887.
Strategy guide
12-14
Strategy guide 12-14