Stoch Answers Papers Up

Compound Interest

Compound interest dates back to the Babylonians and possibly even further back to the Sumerians. It is defined as the initial deposit times one plus the rate raised to the power of time. i.e. exponential growth.

Themes

Exponential, Finance

History

2000 BC Babylonians? Compound Interest
1973 AD Black, Scholes & Merton Black-Scholes