Calc.
posted by Derek .
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
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
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
Nvm, I figured this out myself. :)
Respond to this Question
Similar Questions

algebra Help fast
use the compound interest formula A=P(1+r/n)^nt and A=Pe^rt to solve 1Find the accumulated value of an investment of $5000 at 9% compounded continuously for 6 years. 2Find for an investment of $700 at 16% compounded quarterly for … 
Ma
How much did you invest each month at 6.10% compounded monthly if 10 years later the investment is worth $57,670.12? 
Math
How much did you invest at 9% compounded biweekly if 10 years later the investment is worth $54,000? 
Calc
How much money will we have in 6 months if we invest $1000 into an account earning 8% compounded continuously? 
Algebra
Suppose you invest $5000 at an annual rate of 4% compounded continuously how much will be in the account after 5 years? 
Pre Calc
how much money should i invest at 8.2% compounded continuously if i wish to have $100,000 in 5 years? 
pre calculus
Which is worth more after 5 years, an investment of $1000 at 5% interest compounded semi  annually(twice a year). or an investment of $1000 at 5% interest compounded continuously? 
pre  CALCULUS
Use the compound interest formulas A = Pert and A = P(1 + 𝑟/n)^nt to solve. Suppose that you have $11,000 to invest. Which investment yields the greater return over 10 years: 6.25% compounded continuously or 6.3% compounded … 
Precalc
suppose you want to invest $60,000 for ten years. You can invest your money in a CD that earns 4% interest, compounded quarterly and has no risk, or you can invest your money in futures that ear 10% interest, compounded quarterly. … 
College Algebra
Suppose an investment account is opened with an intial deposit of $12,000 earning 9.6% interest. Round all answers to the nearest dollar. a. How much will the account be worth after 20 years if it is compounded monthly?