It is often used to model population orīacteria growth, or decaying matter (as in a compost pile) and many phenomena To model ANY TYPE of continuous growth or decay. įormula A= P e rt is used whenever we wish We might expect, the graph of falls between the graphs of and. Your calculator, complete the following table, then graph the exponential So you would need to deposit $ 786.63 now into We plug these numbers into the formula, like so: Interest is compounded continuously, we use the formula. You want to have $1000 in this account in 4 years? Much money would you need to invest now in an account that gives 6% Using the variable x instead of t, type in
How much money would you have in theĪccount that pays 7 % interest compounded quarterly or one that pays 6.95%įor the account that pays 7 % compounded quarterly,Īccount paying 6.95 % interest compounded continuously is the better deal sinceĬan also use the table feature of your calculator to compare outputs for Plan to deposit money in an account giving 6% interest compounded continuously.
If interest on an initial deposit of P dollars is compounded continuously
