if you have a principal amount of present value in an account for one year compounded annually,what is the future value of the account at the end of the year if the interest rate is r?and generalize to t periods?
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Calculating the limit of this formula as n approaches infinity (per the definition of continuous compounding) results in the formula for continuously compounded interest: FV = PV x e (i x t), where e is the mathematical constant approximated as 2.7183
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