Saturday, March 5, 2011

Continuous Interest

Formula: A = Pe^rt

A = Amount
P = Principle
e = Button the calculator..
r = Rate
t = Time

Example:

Determine how much money will be in a savings account with an initial deposit of $500 and the interest rate indicated if 3.5% is compounded continuously for 10 years

A = 500e^(.035) (10)
A = $ 709.53

No comments:

Post a Comment