In the context of compound interest growth, if the initial value is set to P, the growth rate of each period is R, and the formula for calculating the final value F after N periods is F = P (1+R) N. In this topic, we mainly pay attention to the increase multiple, so we can regard the initial value as 1, where the growth rate of each trading day is r = 1\% = 0.01, and the number of periods passed is n = 240 trading days.\end{align*}F&=(1 + 0.01)^{240}\\
F&=(1 + 0.01)^{240}\\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:Step 1: Review the formula of compound interest final value.
Step 2: Substitute data for calculation.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.Substituting r = 0.01 and n = 240 into the above formula, we can get:
Strategy guide 12-14
Strategy guide
12-14
Strategy guide
12-14
Strategy guide 12-14
Strategy guide 12-14
Strategy guide