The formula for the amount A in a savings account compounded n times per year for t
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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
Use L’Hôpital’s Rule to show that the limiting formula as the number of compoundings per year approaches infinity is given by A = Pert.
Transcribed Image Text:
nt A = P(1 + 2)". n
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A P1 lim n00 In A4 In P at h1 in P ln nt In n In 1 n ...View the full answer
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