Compound Interest The formula for the amount A in a savings account compounded n times per year for t years at an interest rate r and an initial deposit of P is given by nt r A = P(1 + n Use L'Hôpital's Rule to show that the limiting formula as the number of compoundings per year approaches infinity is given by A = Pe".

College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter4: Exponential And Logarithmic Functions
Section4.2: The Natural Exponential Function
Problem 32E
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Compound Interest The formula for the amount A in a
savings account compounded n times per year for t years at an
interest rate r and an initial deposit of P is given by
nt
r
A = P(1 +
n
Use L'Hôpital's Rule to show that the limiting formula as
the number of compoundings per year approaches infinity is
given by A = Pe".
Transcribed Image Text:Compound Interest The formula for the amount A in a savings account compounded n times per year for t years at an interest rate r and an initial deposit of P is given by nt r A = P(1 + n Use L'Hôpital's Rule to show that the limiting formula as the number of compoundings per year approaches infinity is given by A = Pe".
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