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Mathematics 18 Online
OpenStudy (anonymous):

What is the compound interest formula?

OpenStudy (anonymous):

Tom decides to invest $10,000 into a bank account that promises 3.5 percent interest compounded continuously. Which equation provides the model for principal growth for Tom's savings account?

OpenStudy (anonymous):

@nincompoop

OpenStudy (anonymous):

\[Pt=10,000e^3.^5*t\]

OpenStudy (anonymous):

Its set up like that except t is up

OpenStudy (anonymous):

but I just need the formula

OpenStudy (anonymous):

cause it could be a -3.5

OpenStudy (anonymous):

or a -0.0035

OpenStudy (anonymous):

or a 3.5

OpenStudy (anonymous):

or a -3.5

OpenStudy (anonymous):

@wio

OpenStudy (anonymous):

The compound interest formula is \[A=Pe ^{rt}\] A=Final Amount P=Principal (starting) amount e=the irrational number e r=Interest rate expressed as a decimal (so for example 3.5 % is .035) t=time

OpenStudy (anonymous):

thanks you smart

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