If an initial amount A0 of money is invested at an interest rate r compounded n times a

Chapter 4, Problem 79

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If an initial amount A0 of money is invested at an interest rate r compounded n times a year, the value of the investment after t years is A A0S1 1 r n D nt If we let n l `, we refer to the continuous compounding of interest. Use lHospitals Rule to show that if interest is compounded continuously, then the amount after t years is A A0ert

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