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Math Help - compounded continously

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    compounded continously

    achieve a million dollars in 30 years at 6% interest compounded continously
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  2. #2
    is up to his old tricks again! Jhevon's Avatar
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    Quote Originally Posted by jenzbears View Post
    achieve a million dollars in 30 years at 6% interest compounded continously
    the formula for continuous compounding is the same as that for bacterial growth.

    P(t) = P_0 e^{rt}

    where P(t) is the amount at time t, P_0 is the initial amount, r is the rate of interest, and t is the time.

    you want to solve 1000000 = P_0e^{0.06(30)} for P_0


    the formula is usually written as A = Pe^{rt} though. A is for amount, P is for principle
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