Step 2: Substitute data for calculation.If it rises by 1% or 2% every day, how much will it increase in 240 trading days a year?
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 2: Substitute data for calculation.Substituting r = 0.01 and n = 240 into the above formula, we can get:
F&=(1 + 0.01)^{240}\\This means that after 240 trading days, the overall increase multiple is about 10.8926 times, and the increase is (10.8926-1) \times 100\% = 989.26\%.\begin{align*}
Strategy guide
12-13
Strategy guide 12-13
Strategy guide
Strategy guide
12-13