Continuous Compounding and the Number e
Interactive Video
•
Mathematics
•
9th - 10th Grade
•
Practice Problem
•
Hard
Jennifer Brown
FREE Resource
10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the approximate value of the number e?
3.14
1.414
2.718
1.618
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In the formula A = P * e^(RT), what does the variable P represent?
The initial deposit
The accumulated amount
The time period
The interest rate
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does the variable R represent in the continuous compounding formula?
The accumulated amount
The initial deposit
The interest rate
The time period
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In the context of continuous compounding, what does the expression e^(RT) represent?
The time period
The interest rate
The growth factor
The initial deposit
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the formula used for continuous compounding?
A = P * (1 + R)^T
A = P * e^(RT)
A = P * (1 + RT)
A = P * e^(R/T)
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If a $7,400 deposit is compounded continuously at 5% for 6 years, what is the ending balance?
$10,000.00
$8,500.00
$9,000.00
$9,988.96
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How should 30 months be converted into years for the continuous compounding formula?
2 years
3 years
2.5 years
1.5 years
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