2. The amount A in a savings account compounded n times per year for t years at interest rate of r and with an initial deposit P is A = P (1+)". nt А — Р n If we let n o for fixed P, r,t we obtain the formula for "continuous compounding Find this formula.

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter6: Exponential And Logarithmic Functions
Section6.1: Exponential Functions
Problem 60SE: The formula for the amount A in an investmentaccount with a nominal interest rate r at any timet is...
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2. The amount A in a savings account compounded n times per year for t years at an
interest rate of r and with an initial deposit P is
nt
A = P (1++
If we let n → o for fixed P, r,t we obtain the formula for "continuous compounding".
Find this formula.
Transcribed Image Text:2. The amount A in a savings account compounded n times per year for t years at an interest rate of r and with an initial deposit P is nt A = P (1++ If we let n → o for fixed P, r,t we obtain the formula for "continuous compounding". Find this formula.
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