Hi all I am trying to look at the CA3 workbook and struggling to explain the sentence below in a non-technical language. Any help will be appreciated. "“To estimate your investment in five years’ time you can accumulate your contributions using the interest rate shown, continuously compounded.”
It will be hard for many users of this forum to help you because we don't have access to the workbook you reference and so don't know the context of your question. It may be more appropriate for you to seek help via the forum provided within the online system to which you have access as an examination candidate.
I find generally it helps to think of someone you know with a similar level of knowledge to the person in the question, then think what you would say to them. I also try to physically think of what is happening (ie that there is an investment now, in 5 years there will be a different amount, you are trying to work out how much it will be then, you guess how it may change in one year, and use that to work out how it will change over 5 years) Then try to put that all into a nicely written sentence. Hope that helps.
