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Continuously Compounded Compound Interest Formula Interest nt A = Pe A =P 1+- n A = Future Value P = Principal (Initial Value) A =

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Continuously Compounded Compound Interest Formula Interest nt A = Pe" A =P 1+- n A = Future Value P = Principal (Initial Value) A = Future Value P = Principal (Initial Value) r = Interest Rate r = Interest Rate t = time n = number of times compounded in one "t" t = time Suppose that you have $15.000 to invest. Which investment yields the greater return over 15 years: 5.25% compounded continuously or 5% compounded semiannually? Use the two formulas above and show all your steps

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