Precalculus: Mathematics for Calculus, 7th Edition

Published by Brooks Cole
ISBN 10: 1305071751
ISBN 13: 978-1-30507-175-9

Chapter 4 - Review - Concept Check - Page 388: 11

Answer

a. $A(t)=P(1+\displaystyle \frac{r}{n})^{nt}$ b. $A(t)=Pe^{rt}$

Work Step by Step

Compound lnterest, p. 334: If a principal $P$ is invested in an account paying an annual interest rate $r$, compounded $n$ times a year, then after $t$ years the amount $A(t)$ in the account is $A(t)=P(1+\displaystyle \frac{r}{n})^{nt}$ Continuously compounded interest, p.340$:$ If the interest is compounded continuously, then the amount is $A(t)=Pe^{rt}$
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