In lecture. Professor Gruber explained discrete compounding interest. Interest can also be compounded continuously. Here we explain the difference. Professor Gruber calculated future value as FV = P(l + r)', where P is the principal. r is the interest rate. and t is the term of the contract (often in years). This formula can be generalized to W = P(1 + r/m)\You are planning to invest in ne wine. Each case costs $100 (at time 0]. and you know from experience that the (future) value of a case of wine held for t years is woo/i for t 2 1. (Suppose that the value is 100 for 0