I've gotten the first answer, but I cannot figure out the second
one. I don't know what "e" stands for in the formula
Homework Answers
The first part is answered correctly.
Part 2 :
future value = present value * ert
where r = continuously compounded rate of interest
t = time in years
The number e is a mathematical constant approximately equal to 2.71828 and is the base of the natural logarithm: the unique number whose natural logarithm is equal to one.
future value = present value * ert
future value = $10,0000 * 2.71828(0.035*1)
future value = $10,356.20
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I've gotten the first answer, but I cannot figure out the second
one. I don't know...
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