... we get:$ 135 =( )($ 130 )(1) + $ 130 so:= $ 135 $ 130 1 1 038 46154 1 =38 46154%As another example, to calculate the annual rate of growth of GDP, compounded annually,between 1991 and 19 93, we use ... is two years.$ 135 =2($100 ) so:= [ln($ 135 ) ln($100 )](0 5) 0 15005 230 = 15 15005 230 %Economists generally prefer to use continuous compounding, for two reasons. First, un-der continuous ... from above: $100, $ 130 ,and$ 135 . The continuous growth rate between the first two is: ln($ 130 ) ln($100 ). Thecontinuous growth rate between the second two is: ln($ 135 ) ln($ 130 ). The average...