If an initial amount A0 of money is invested at an interest rate i compounded times a

Question:

If an initial amount A0 of money is invested at an interest rate i compounded times a year, the value of the investment after t years is

A-a{1+)

If we let n → ∞, we refer to the continuous of interest. Use l€™ Hospital€™s Rule to show that if interest is compounded continuously, then the amount after years is A = A0eit
Compounding
Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will...