Variable Rate of Return
The logarithmic or continuously compounded return, sometimes called force of interest, is a function of time defined as follows:
which is the rate of change with time of the natural logarithm of the accumulation function.
Conversely:
reducing to
for constant .
The effective annual percentage rate at any time is:
Read more about this topic: Accumulation Function
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—Edmund Spenser (1552?–1599)
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