Continuous compounding is the mathematical limit that compound interest can reach.
It is the limit of the function A(1 + 1/n) ^ n as n approaches infinity. IN theory interest is added to the initial amount A every infinitesimally small instant.
The limit of (1 + 1/n)^n is the number e ( = 2.718281828 to 9 dec places).
Say we invest $1000 at daily compounding at yearly interest of 2 %. After 1 year the $1000 will increase to:-
1000 ( 1 + 0.02/365)^365 = $1020.20
with continuous compounding this will be
1000 * e^1 = $2718.28
She can only but 14 movies because 18.50÷1.25= 14.8 and then 1.25×14=17.5
Answer:
(B)
Step-by-step explanation:
Interest accrued is defined as the interest which we need to pay at the end of some time span. The interest accrued may be on daily basis as well as on monthly basis.
For calculating the interest accrued, we first multiply the principal amount with APR, this will give the interest of one year.
Then we will multiply it with the no. of months on which the interest is being calculated and divide it by total no. of months.
This will give the interest accrued every month.
When calculating interest accrued, you should <u>multiply the principal by the APR and number of months, then divide by the total number of months in the year.</u>
Answer:
D) -3/4
Step-by-step explanation:
Slope is found by using
m= (y2-y1)/(x2-x1) hwere the points are (x1,y1) and (x2,y2)
= (-3-3)/(3--5)
= (-6)/(3+5)
= -6/8
=-3/4
The anwser is 36.22 inches
