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OpenStudy (mallorysipp234):
What is the difference between A=Pe^rt and A=P(1+r/n)^nt?
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OpenStudy (peachpi):
A = Pe^(rt) is the formula for continuously compounded interest, where the principle earns interest continuously. A = P(1 + r/n)^(nt) is the formula for periodically compounded interest, where the principle earns interest depending on the period (daily, quarterly, monthly, yearly, etc.)
OpenStudy (mallorysipp234):
so if i have compounded continuously its A=pe^RT and if its monthly for example its the other one? thankyou
OpenStudy (peachpi):
yes. you're welcome
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