College Algebra / Unit 8 Alg 421 short lesson, about 20 seconds
Continuous Growth and Decay
Captions available
The idea
The continuous growth formula uses e as the base: A = Pe^(rt), the limit of compounding run at every instant.
In practice
1000 at 6% continuous for 10 years: A = 1000e⁰·⁶ ≈ 1822.12 — a few dollars past the monthly compounder's 1819.40, with nothing left to squeeze.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
- Nothing. This is a starting point.
Unlocks
- Nothing yet depends on this.
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