Question: Recall that the compound interest formula for continuous compounding is A ( P , r , t ) = P e r t where A
Recall that the compound interest formula for continuous compounding is
where is the future value of an investment of dollars after years at an interest rate of
a Calculate and all evaluated at Round your answers to two decimal places.
Interpret your answers.
For a $ investment at interest invested for years and compounded continuously, the accumulated amount is increasing at a rate of $ per $ of principal, at a rate of $ per increase of in and at a rate of $ per year.
b What does the function of tell about your investment?
tells you the rate at which the accumulated amount in an account bearing interest, compounded continuously, with a principal of $ is growing per $SelectV in the
Select years after the investment. Select
interest rate
principal
SU
future value of investment
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