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Continuous compounding
A = P·e^(rt)
Where: A = amount, P = principal (₹), r = rate (decimal per year), t = time (years)
Solved example
Given: P = 7, r = 5, t = 10
Find: A (amount)
- Formula: A = P·e^(r·t)
- Substitute the values: A = 7·e^(10·5)
- Result: A = 3.629294 × 10²²
Answer: A = 3.629294 × 10²²
Calculator
How to calculate Continuous compounding
- Write down the formula: A = P·e^(rt).
- Note the known values (P, r, t).
- Substitute them and simplify to find A.
- Use the calculator above to solve for any letter.
Frequently asked questions
What is the formula for Continuous compounding?
The formula is A = P·e^(rt), where A = amount, P = principal (₹), r = rate (decimal per year), t = time (years).
What is Continuous compounding when P = 7, r = 5, t = 10?
A = 3.629294 × 10²². Substitute the values into A = P·e^(rt) and simplify.