Q:
# What Is A = P(e)^(rt)?

The formula A = P(e)^(rt) is a mathematical formula to calculate continuously compounded interest over a period of time. This formula is only used if interest is compounded continuously, rather than compounded a discrete number of times per year such as monthly.

Continue ReadingIn the formula A = P(e)^(rt), the value "P" represents the principal, "r" represents the annual interest rate as a decimal, "t" represents the number of years and "A" represents the future value. The value "e" is a constant known as Napier's number, equal to approximately 2.7183. The formula is an example of exponential growth. Continuous interest is assumed to compound at infinitely small time intervals, so continuously compounded interest results in a higher future value than interest that is compounded at regular intervals, such as monthly.

Learn more about Algebra-
Q:
## What Are Mortgage Equations, and How Are They Calculated?

A: A mortgage equation is the mathematical formula that a lender uses in order to determine the borrower's fixed monthly payment to pay off a mortgage loan ov... Full Answer >Filed Under: -
Q:
## What Is the Inventory Turnover Ratio?

A: The inventory turnover ratio is a formula that displays how many times inventory is replaced over a period of time by dividing cost of goods sold over aver... Full Answer >Filed Under: -
Q:
## What Is a Trivial Solution?

A: In mathematics, a trivial solution is one that is considered to be very simple and poses little interest for the mathematician. Typical examples are soluti... Full Answer >Filed Under: -
Q:
## What Is the Formula for Finding Cubic Inches?

A: The formula for calculating cubic inches depends on the geometric shape. For example, the formula for the volume of a rectangular solid is length x width x... Full Answer >Filed Under: