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. :)

## Answer this Question

## Related Questions

- Pre Calc - how much money should i invest at 8.2% compounded continuously if i ...
- Calc - How much money will we have in 6 months if we invest $1000 into an ...
- Algebra - Suppose you invest $5000 at an annual rate of 4% compounded ...
- algebra- Help fast - use the compound interest formula A=P(1+r/n)^nt and A=Pe^rt...
- pre calculus - Which is worth more after 5 years, an investment of $1000 at 5% ...
- pre - CALCULUS - Use the compound interest formulas A = Pert and A = P(1 + &#...
- Math - How much did you invest at 9% compounded bi-weekly if 10 years later the ...
- Ma - How much did you invest each month at 6.10% compounded monthly if 10 years ...
- Math - How much did you invest each month at 6.60% compounded monthly if 25 ...
- math - Sally invests some money at 65%/a compounded annually. After 5 years . ...