The formula for the amount A in an investment account with a nominal interest rate r at
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The formula for the amount A in an investment account with a nominal interest rate r at any time t is given by A(t) = a(e)rt, where a is the amount of principal initially deposited into an account that compounds continuously. Prove that the percentage of interest earned to principal at any time t can be calculated with the formula I(t) = ert − 1.
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Consider the formula for nominal interest as following At ae rt The a...View the full answer
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