Posted by **Derek** on Tuesday, July 15, 2008 at 12:12pm.

Using calculus: If you invest $5000 compounded continuously at 4% p.a. how much will this investment be worth in 5 years? I am not sure what e is. Should my equation be this: A(t)=Pe^rt

A(t)=(5000e^(0.04)(5))

Thanks.

- Calc. -
**drwls**, Tuesday, July 15, 2008 at 12:38pm
e is the root of natural logarithms, 2.71828.. It has appeared in some of your previous questions, so you should be familiar with it.

e is also the limit as n-> infinity of

(1 + 1/n)^n. That is why it appears on the formula for continuous compounding.

A hand calculator will let you compute 5000^*e^0.2 easily

- Calc. -
**Derek**, Tuesday, July 15, 2008 at 12:50pm
My other questions I didn't understand what e was either. My calculator does not allow me to perform the function that you told me. Please further explain.

- Calc. -
**Derek**, Tuesday, July 15, 2008 at 12:59pm
Nvm, I figured this out myself. :)

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