A = P e^{rt}, where P is principal, r is rate, t is time.
Key Concepts
- Concept: Continuous compounding
- Concept: Exponential growth factor
- Concept: Final amount A
Steps
- Action: Identify P, r, t
- Action: Use A = P e^{rt}
- Action: Interpret A as the future value
Formula
$$A = P e^{rt}$$