Section 11.3 – The Number e

Compound Interest (Periodically) A – Accumulated Money P – Principal (Initial Amount) r – Interest Rate (in decimal form) t – time (in years) n – Number of times compounded Compound Interest (Continuously) A – Accumulated Money P – Principal (Initial Amount) r – Interest Rate (in decimal form) t – time (in years)

Find the compound interest on $100 at 3% semiannually for 2 years Compound Interest (Periodically) A – Accumulated Money P – Principal (Initial Amount) r – Interest Rate (in decimal form) t – time (in years) n – Number of times compounded $ Total Interest $ $100 $6.13

Compute the compound interest on $200 at 4% continuously for one year. Compound Interest (Continuously) A – Accumulated Money P – Principal (Initial Amount) r – Interest Rate (in decimal form) t – time (in years) $ Total Interest $ $200 $8.16

Find the amount of money in an account if $1000 is compounded continuously for 15 years at a rate of 2 percent. Compound Interest (Continuously) A – Accumulated Money P – Principal (Initial Amount) r – Interest Rate (in decimal form) t – time (in years) $

Find the amount of money if $1000 is invested: a)Compounded continuously for 3 years at 2% b)Compounded quarterly for 3 years at 2%