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how do I calculate interest compounded continuously?

 Feb 23, 2015

Best Answer 

 #2
avatar+23254 
+5

Use the formula:  A = Pert

where A = final amount

          P = initial amount (amount invested)

          e = base of natural logarithms

          r = rate (as a decimal)

          t = time (number of years if r is a yearly rate). 

 Feb 24, 2015
 #1
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Well its fairly simple, to calculate simple interest you do I = principle (amount borrowed/given) rate (annual interest rate as a decimal) and time (years). In other words I = part. Since compound interest is every year you just always put 1 for years and do the equation as many years as needed. Hope this helps!!✨

 Feb 24, 2015
 #2
avatar+23254 
+5
Best Answer

Use the formula:  A = Pert

where A = final amount

          P = initial amount (amount invested)

          e = base of natural logarithms

          r = rate (as a decimal)

          t = time (number of years if r is a yearly rate). 

geno3141 Feb 24, 2015

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