The Formula for Finding the Amount an Investment Grows to If

question 10

Short Answer

The formula for finding the amount an investment grows to if it is compounded continuously is A = Pert, A is the accumulated amount, P is the principal invested, e is the natural exponent, r is the rate per year, and t is the number of years. Find the accumulated amount A if $10,000 is compounded continuously for 3 years at 8% per year.

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Definitions:

Insight

The ability to gain an accurate and deep understanding of a person or situation.

Shared Understanding

The common knowledge or mutual agreement reached among individuals or within groups, facilitating communication, cooperation, and coordinated action.

Social Group

A collection of individuals who interact with each other and share similar characteristics or a sense of unity and belonging.

Scaffold

A support method or structure that allows individuals to move to higher levels of learning or understanding.