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:

A=PertA = P e^{rt}

where:

  • AA is the accumulated value,
  • PP is the principal (initial investment),
  • rr is the interest rate in decimal form,
  • tt is the time in years,
  • ee is the base of the natural logarithm, approximately equal to 2.71828.

To proceed, I need values for PP, rr, and tt. Could you provide these values?

Afterward, I can substitute them and compute AA.

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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