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Recall that the compound interest formula for continuous compounding is A(P, r, t) = Pert where A is the future value of an investment of
Recall that the compound interest formula for continuous compounding is A(P, r, t) = Pert where A is the future value of an investment of P dollars after t years at an interest rate of r. (a) Calculate and all evaluated at (100, 0.3, 12). (Round your answers to two decimal places.). ap' ar aa ap aa ar aA at Interpret your answers. For a $ investment at per $1 of principal, at a rate of $ % interest invested for years and compounded continuously, the accumulated amount is increasing at a rate of $ per increase of 1 in r, and at a rate of $ per year. , is aa (b) What does the function of t tell about your investment? ap (100, 0.3, t) Ap(100, 0.3, t) tells you the rate at which the accumulated amount in an account bearing % interest, compounded continuously, with a principal of $ growing per $1 ---Select--- in thi ---Select--- years after the investment. future value of investment Need Help? Watch It principal interest rate
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