February 06, 2015
Students compare periodic and continuous compounding and apply continuous compounding to a variety of problem situations.
Students will use the table function to observe data points from the graph of the function for different values of x.
Students then compare the periodic compounding rate over various numbers of compounding periods per year to continuous compounding to find that as n gets infinitely large, the two formulas are equivalent.
Students are presented with a variety of problems involving continuous compounding relating to personal finance. This is a great opportunity to help students better understand important financial concepts relating to investment and credit along with key math concepts.
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