2.4-2.7 Vocab

Front

What is the formula for calculating continuous compound interest?

Back

B = p * e^(rt), where B is the ending balance, p is the principal, e is the exponential base, r is the interest rate, and t is the number of years.

Front

What is the term for a record of interest earned printed on a statement monthly or quarterly?

Back

Crediting.

Front

Define a function in mathematical terms.

Back

A rule that assigns a unique member of the range to each element of the domain.

Front

What is the significance of the number 'e' in mathematics?

Back

It is the base of the natural logarithm and is used in continuous growth models.

Front

What does APR stand for?

Back

Annual Percentage Rate.

Front

What is the difference between daily compounding and quarterly compounding?

Back

Daily compounding calculates interest every day, while quarterly compounding calculates interest every three months.

Front

What is the purpose of limits in calculus?

Back

Limits are used to define the behavior of functions as they approach a certain point.

Front

What is the relationship between a function and its graph?

Back

A function can be represented graphically, showing the relationship between the input (domain) and output (range).

Front

What is the meaning of 'compound interest'?

Back

Interest calculated on the initial principal and also on the accumulated interest from previous periods.

Front

How do you calculate the ending balance using the continuous compound interest formula?

Back

By substituting the values of principal, interest rate, and time into the formula B = p * e^(rt).