Work out force of interest instantly with clear inputs, formula shown and shareable results.
The force of interest is the instantaneous rate of growth, δ = ln(1 + i). It is the continuous-time counterpart of an effective annual rate and is the natural rate to use whenever interest is credited without interruption.
Force of interest
δ = ln(1 + i); A(t) = e^(δt)
Yes, for positive rates. Because ln(1+i) < i, a 6% effective rate corresponds to a force of about 5.83%.
In actuarial and derivative pricing work, where cash flows and mortality are modelled continuously rather than at discrete year ends.