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INVESTIGATION 2 CONTINUOUS COMPOUND INTEREST A formula for calculating the amount to which an investment grows is On =(It where 4, is the final amount.
INVESTIGATION 2 CONTINUOUS COMPOUND INTEREST A formula for calculating the amount to which an investment grows is On =(It" where 4, is the final amount. co is the initial amount. 1 is the interest rate per compounding period, " is the number of periods or number of times the interest is compounded: We will investigate the final value of an investment for various values of n, and allow n to get extremely large. What to do: 1 Suppose $1000 is invested for one year at a fixed rate of 6%% per annum. Use your calculator to find the final amount or makering value if the interest is paid: a annually (@ = 1. { =6% = 0.06) b quarterly (n = 4 7= 2- = 0,015)
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