Asked by Nick
The formula for the amount (A) in a savings account compounded n times per year for t years at an annual interest rate r, with initial deposit P, is given by A=P(1+r/n)^nt. Evaluate this formula as the number of compoundings per year becomes infinite. (the number "e" should show up)
Answers
Answered by
Steve
recall that
lim (1+1/n)^n = e
n->∞
lim (1+1/n)^n = e
n->∞
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