Solved: Compound Interest The formula for the amount in a savings account compounded
Chapter 8, Problem 88(choose chapter or problem)
Compound Interest The formula for the amount A n a savings account compounded n times per year for t years at an interest rate r and an initial deposit of P is given by
\(A=P\left(1+\frac{r}{n}\right)^{n t}\)
Use L’Hôpital’s Rule to show that the limiting formula as the number of compoundings per year approaches infinity is given by \(A=P e^{r t}\)
Text Transcription:
A=P(1+r/n)^nt
A=Pe^rt
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