Continuous Compounded (Continuously Compounded) Interest

Which formula should you use to calculate continuously compounded interest?

What is continuously compounded interest?

• Interest compounded weekly

• Interest compounded daily

• Interest compounded every year

• Interest compounded every possible moment of time

You invest $300 in an account that compounds interest continuously at 5% for 10 years. Which of the following is NOT true?

• the rate is 5%

• r = 0.5

• A(t) is unknown at the moment

• P = 300

"You invest $400 in an account that earns 5% interest compounded continuously. How long will it take for the account to reach a balance of $650?"

Which variable is this question asking you to solve for?

• A(t)

• t

• P

• r

• 120

• 350

• 0.41

• 4.1%

• 7

Compounded Continuously an investment of  $400 at a rate of 35% for 2 years

• $280
• $680
• $1,034.47
• $805.50

P = 26,000 | Rate = 2.4% | 4 years | Compounded Continuously | Amount owed???

• $2,496
• $28,496
• $3,406,924
• $28,619.74

If $1,000 is invested at 16% interest, compounded continuously, for five years, what is the ending balance?

• $1,225,54
• $2,225.54
• $22,255.40
• $225.54

Mr. T invested $15,000 in an account that pays 5% interest compounding continuously, how much is in the account after 5 years? 

• $15,500.50
• $19,260.38
• $19,260.40
• $21,500.25