what are the constants in this? please help!!!!
if an initial amount A_{0} of money is invested at an interest rate r compounded n times a year, the value of the investment after t years is
A = A_{0} (1 + r/n )^{nt}
if we let n->infinity we refer to the continuous compounding of interest, use L' Hospital's Rule to show that if interest is compounded continuously, then the amount after t years is
A = A_{0} e^{rt .....i dont understand how to get from the first amount to the second using l' hospital's rule}
You are being asked to compute:
where are constants.
To use L'Hôpital's rule, so you need to get it into the indeterminate form or .
Try taking the natural log of both sides, and use the properties of limits and logs to get one of these forms.