Tuesday

March 31, 2015

March 31, 2015

Posted by **Emily** on Monday, November 19, 2012 at 8:22pm.

- Math -
**mathtaculator**, Monday, November 19, 2012 at 8:32pmContinuously Compounded Interest

Continuously compounded interest is interest that is, hypothetically, computed and added to the balance of an account every instant. This is not actually possible, but continuous compounding is well-defined nevertheless as the upper bound of "regular" compound interest. The formula, is sometimes called the shampoo formula (PertŪ)

Thus A=Pe ^rt

where e = napier's number or euler's constamt

p = principal/initial investment

r=annual interest rate as a decimal

t = number of years

a = amount of money after t years

thus we plug in to get 4000=2000*e ^9.5t

= 4000 ~= 5436.6^9.5t.

You can solve for t from here

**Answer this Question**

**Related Questions**

math - How long it will take for an investment of 1000 dollars to double in ...

math - How long will it take for an investment of $13,000 to double if the ...

How long will it take the investment to double? - $3,600 is invested in an ...

math - Approximately how long will it take an investment of $300 to triple, if ...

Calculus - An investment grows ar a rate of 2.5% each year compounded ...

Business math/Finite - How long to the nearest year, will it take an investment ...

calculus - The proprietor of Carson Hardware Store has decided to set up a ...

math - marcia has $220,000 saved for her retirement. How long will it take for ...

College Algebra - Hello Steve, it didn't work for "t" i can't get the actual ...

Maths - Get Rich Quick Investments LTD offers 2 investment schemes. Scheme 1: ...