Math Problem Statement
A 1-year loan with a 5% APR will have the most interest charged with what type of compounding?
Solution
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Math Problem Analysis
Mathematical Concepts
Exponential Functions
Compounding Interest
Formulas
Continuous compounding formula: A = P * e^(rt)
Other compounding formulas: A = P * (1 + r/n)^(nt)
Theorems
Compound Interest Theorem
Suitable Grade Level
Grades 10-12
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