Using a Compound Interest Formula

EandH

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When an amount of money is invested at interest rate k, compounded continuously, interest is computed every “ instant” and added to the original amount. The balance , after t years, is given by the exponential growth model. (The formula is P(t) = P subscript zero e to the superscript kt) just in case.
P(t) = P_0e^k^t

Suppose that P_0 is invested in a savings account where interest in compounded continuously at 3.1% per year.

Express p(t) in terms of p0 and 0.031

Suppose that $1000 is invested. What is the balance after 1 yr? after 2yr?

When will an investment of 1000 double itself.


P(t) = P_0e^k^t
 
EandH said:
When an amount of money is invested at interest rate k, compounded continuously, interest is computed every “ instant” and added to the original amount. The balance , after t years, is given by the exponential growth model. (The formula is P(t) = P subscript zero e to the superscript kt) just in case.
P(t) = P_0e^k^t

Suppose that P_0 is invested in a savings account where interest in compounded continuously at 3.1% per year.

Express p(t) in terms of p0 and 0.031

Suppose that $1000 is invested. What is the balance after 1 yr? after 2yr?

When will an investment of 1000 double itself.


P(t) = P_0e^k^t


Duplicate post.
 
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