College Algebra (10th Edition)

Published by Pearson
ISBN 10: 0321979478
ISBN 13: 978-0-32197-947-6

Chapter 6 - Section 6.7 - Financial Models - 6.7 Assess Your Understanding - Page 477: 73

Answer

See below.

Work Step by Step

Compound interest is the interest that is paid based on the principal and any interest that was earned previously. Compounding continuously happens when the interest is compounded so that after 1 year the amount is $Pe^r$.
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