Question

P(t)=P(o)e raised to the r times t.
P(o)=5,000
r=0.06
t=8.

(a) quarterly.
(b) continuously.

Answer 1

here is the equation, \[P(t)=P(o)e ^{rt}\]

Answer 2

wat is the different between finding it quarterly and finding it continuously?

Answer 3

sarahk2, do you think you could help me out with this problem?

Answer 4

kc, any tips?

Answer 5

you guys there?

Answer 6

hello?

Answer 7

I don't understand the question
so many created symbols

Answer 8

ahh

Answer 9

wait i actually get it

Answer 10

e is involved. Definitely continuously.

Answer 11

so if I just plug in the values, I get 8,080.372011

Answer 12

would that be for continuous or quarterly?

Answer 13

you there?

Answer 14

If you see e in the formula then it's definitely continuously

Answer 15

yeah, you are back :)

Answer 16

so that is it continuously

Answer 17

but how bout quarterly?

Answer 18

do I just divide by 4 or use a different formula?

Answer 19

P(t)=P(o)(1+r/4)^(4t) would be quaterly

Answer 20

Hero!!!!!!!

Answer 21

wat up?

Answer 22

so for quarterly

Answer 23

let me get this straight

Answer 24

Yeah, but...

Answer 25

sorry let me finish my breakfast first

Answer 26

the formula would be for quarterly the following:?

\[P(t)=p(o)(1+r/4)^{4t}\]

Answer 27

There you go

Answer 28

ok, so wat happened to the e?

Answer 29

As @kc_kennylau was saying...if you see \(e\), in a compound interest formula, it is for continuous compounding

Answer 30

by the way, I plugged in the values for quarterly and got appromixmately

8,051.6216

Answer 31

but

Answer 32

how do I derive those formulas for quarterly and continuous?

Answer 33

will the professor have them on the test or is it just like remembering the

pythagorean theorem?

Answer 34

any comments, hero or kc?

Answer 35

You derive them from

Exponential equation:
\[y = ab^x\]

(x,y) = point on the curve
a = the initial value
b = growth or decay rate

Answer 36

ty, hero and kc :)

Answer 37

I really appreicate it

Answer 38

(x,y) can refer to things such as
(time, population)
(years, account balance)