Math Problem Statement
Use the formula
Upper A equals Upper P e Superscript rtA=Pert
to determine the accumulated value when the interest is compounded continuously. Substitute the values of P, r (in decimal form), and t to determine the value of A. Check your work carefully.
Solution
The formula for continuous compounding is:
where:
- is the accumulated value,
- is the principal (initial investment),
- is the interest rate in decimal form,
- is the time in years,
- is the base of the natural logarithm, approximately equal to 2.71828.
To proceed, I need values for , , and . Could you provide these values?
Afterward, I can substitute them and compute .
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Math Problem Analysis
Mathematical Concepts
Exponential Growth
Continuous Compounding
Interest Calculation
Formulas
A = Pe^(rt)
Theorems
Continuous Compounding Formula
Suitable Grade Level
Grades 10-12
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