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Activity 7.3

Activity 7.3. Continuous Compounding By Mr. Flannery. Compounding to the limit. The compounding formula from 7.2 Where A is the amount in year t, after n compounding periods and A 0 is the initial deposit

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Activity 7.3

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  1. Activity 7.3 Continuous Compounding By Mr. Flannery

  2. Compounding to the limit • The compounding formula from 7.2 Where A is the amount in year t, after n compounding periods and A0 is the initial deposit On pages 415 to 417, you will learn about continuous compounding, which is what happens when n gets to be very large

  3. Compounding to the limit • Work on 1 2 and 3 on pages 415-417, you will need a calculator

  4. Continuous Compounding

  5. Example of Continuous Compounding • Assume you put $1000 in the bank at 10% compounded monthly, how much will you have after 5 years

  6. Example of Continuous Compounding • Now assume you have the same amount in the bank for 5 years but you received continuous compounding, how much will you have in 5 years

  7. Graphing Exponentials • Open to page 417 and work on numbers 4 and 5

  8. Graphing exponentialsGrowth Patterndifferent growth rates Graphing Exponentials

  9. Graphing exponentialsGrowth Patternsame growth rates

  10. Negative Growth • Go to page 418 and work on 6, 7, 8

  11. Negative Growth

  12. Negative Growth

  13. How long does it take

  14. How long does it take

  15. How long does it take • Open to page 420 and do problems 9, 10 and 11

  16. Summary

  17. Summary

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