The Formula for Finding the Amount an Investment Grows to If

question 25

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 $4,500 is compounded continuously for 6 years at 7.5% per year.

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Definitions:

Hippocampus

A region of the brain that is associated with memory formatting, navigation, and the emotional response.

Procedural Memory

The aspect of long-term memory that is responsible for knowing how to perform tasks and actions, such as riding a bike or typing.

Cerebral Cortex

The outer layer of neural tissue of the cerebrum of the brain, involved in various high-level brain functions.

Parts of Speech

Categories of words in a language that are distinguished by their grammatical properties and functions, such as nouns, verbs, and adjectives.