If $1,000 is invested at 5% compounded n times per year, the balance after 1 year will
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If $1,000 is invested at 5% compounded n times per year, the balance after 1 year will be 1,000(1 + 0.05x)1/x, where x = 1/n is the length of the compounding period. For example, if n = 4, the compounding period is 1/4 year long. When the length of the compounding period approaches zero, we say that interest is compounded continuously, and the balance after 1 year is given by the limit.
Estimate the value of this limit by filling in the second line of the following table:
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Related Book For 
Calculus For Business, Economics And The Social And Life Sciences
ISBN: 9780073532387
11th Brief Edition
Authors: Laurence Hoffmann, Gerald Bradley, David Sobecki, Michael Price
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