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Compound Interest (Continuously) - Problem 4

Teacher/Instructor Alissa Fong
Alissa Fong

MA, Stanford University
Teaching in the San Francisco Bay Area

Alissa is currently a teacher in the San Francisco Bay Area and Brightstorm users love her clear, concise explanations of tough concepts

As the number of times the interest rate is compounded approaches infinity, we get a new equation for compounded interest that is explained here. The base approaches the constant "e," which is approximately 2.72.... . In order to solve for different parameters in this equation, remember to write the interest rate as a decimal and be prepared to use natural logs to solve for a variable in the exponent.

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