Compute the continuously compounded interest rate for 228 days where the ACT/365 interest rate is 2.92%. Give your answer to four decimal places. Enter 4.1234% as 4.1234

The answer is 1.8407.

Explanation:

To calculate interest rate for 228 days we will first calculate daily rate and than put value in compounding rate formula.

Daily interest rate = 2.92%/365 = 0.008 %

Interest rate 228 = (1+I%) ^n - 1

Interest rate 228 = (1+0.008%) ^228-1 = 1.8407%