If you initially invest $1 at an interest rate of 2% compounded n times per year, the value of theinvestment after t years isnt0.02A(t) = (1+nIf we let n → 0, we say that the interest is compounding continuously.Calculate lim A(t).

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Answered: If you initially invest $1 at an…

Algebra and Trigonometry (MindTap Course List)

4th Edition

ISBN:9781305071742

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 2E

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If you initially invest $1 at an interest rate of 2% compounded n times per year, the value of the investment after t years is AO) - (1 + )". nt 0.02 n If we let n → 0, we say that the interest is compounding continuously. Calculate lim A(t). n-00