# Accumulated Amount of Money

• Dec 1st 2008, 08:10 PM
Matho
Accumulated Amount of Money
I don't understand this problem. How do I use t=10?

The function represents the rate of flow of money in dollars per year. Assume a 10-year period and find the accumulated amount of money flow at t = 10.

f(x) = 500 at 14% compounded continuously
• Dec 3rd 2008, 07:41 PM
TKHunny
You can just build these things. Consider the following engine:

$
\sum_{m=1}^{n} \frac{500}{n}\cdot \left(1+\frac{0.14}{n}\right)^{m}
$

What does it mean for n = 1? n = 2? n = 4? n = 12? n = 52? n = 365?

Now ponder this.

$
\int_{0}^{1} 500 \cdot e^{0.14 \cdot t}\;dt
$

Are these two expressions related?