The continuous-compounding formula is A = P e^{rt}.
Key Concepts
- Concept: Formula form: A = P e^{rt}
- Concept: Variables: P, r, t
- Concept: Interest I = A − P
Steps
- Action: Compute A using A = P e^{rt}
- Action: Solve for r: r = frac{1}{t} lnleft(frac{A}{P}right)
- Action: Compute interest: I = A − P
Formula
$$A = P e^{rt}$$