I don't understand this problem. How do I use t=10?

f(x) = 500 at 14% compounded continuously

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.

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- Dec 1st 2008, 07:10 PMMathoAccumulated Amount of Money
I don't understand this problem. How do I use t=10?

f(x) = 500 at 14% compounded continuously

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.

- Dec 3rd 2008, 06:41 PMTKHunny
You can just build these things. Consider the following engine:

$\displaystyle

\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.

$\displaystyle

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

$

Are these two expressions related?