Question

Determine the simple interest. The rate is an annual rate. Assume 360 days in a year. P=$250, r=4.5%,t=4years

Answer 1

For continuously compounded interest, use the "shampoo formula"!
\[A = Pe ^{rt}\]

For regular interest use
\[A = P(1+r)^{t}\]
where t is measured in years