I am trying to do a problem using the continuous compound interest formula which is A=Pe^rt
When P=8000 r=7.12% t=6 years
I can get as far as 8000e^(.0712)(6)
I am not sure what the *e* is or how to get rid of it and I do not see that in my book. Any help would be greatly appreciated. Thanks

Question

I am trying to do a problem using the continuous compound interest formula which is A=Pe^rt  
When P=8000 r=7.12% t=6 years 
I can get as far as 8000e^(.0712)(6)
I am not sure what the *e* is or how to get rid of it and I do not see that in my book.  Any help would be greatly appreciated.  Thanks

allank · Answer

'e' is an important mathematical constant approximately 2.71828. Read more about it here: http://en.wikipedia.org/wiki/E_(mathematical_constant)

phi · Answer

look on your calculator.  do you see a button $ e^x $

e is 2.71828.....

allank · Answer

And @phi has told you how to "get rid" of it.

phi · Answer

this might be more than you are interested in, but it explains where e comes from http://www.khanacademy.org/finance-economics/core-finance/v/introduction-to-compound-interest-and-e

phi · Answer

to get your answer, type
8000*e^(0.0712*6)=
in google's search window