The formula for the amount A in a savings account compoun ded n times per year for t years at an interest rate r and an initial deposit of P is given by A = P (1+)" rnt Sh ow that the limiting formula as the number of compoundings per year approach es infinityis given by A = Pe.

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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The formula for the amount A in a savings account compoun ded n times per year for t years at
an interest rate r and an initial deposit of P is given by
A=r (1+)".
rnt
Sh ow that the limiting formula as the number of compoundings per year approach es infinityis
given by A = Pet.
Transcribed Image Text:The formula for the amount A in a savings account compoun ded n times per year for t years at an interest rate r and an initial deposit of P is given by A=r (1+)". rnt Sh ow that the limiting formula as the number of compoundings per year approach es infinityis given by A = Pet.
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