
Compounding Continuously
What annual rate compounded continuously is equivalent to a nominal rate of 6% compounded semiannually?
This is what I tried doing:
$\displaystyle e^{r}1=e^{0.06}1$
But i'm guessing that since it's semiannually 0.06 should be divided by 2?
Let me know if i'm on the right track
Thanks!

Earning a nominal 6% compounded semiann gives you $\displaystyle 1.03^2 $ at the end of a year, for each dollar invested at the beginning of such year.
So you want to solve for r, where
$\displaystyle e^r \ =\ 1.03^2 $
Hope that helped a li'l bit, li'l cookie.;)

Yes it did, thanks hun :)