Education Technology

Precalculus: Accelerated Returns
by Texas Instruments

Updated on February 06, 2015

Overview

Students compare periodic and continuous compounding and apply continuous compounding to a variety of problem situations.

Key Steps

  • Image

    Students will use the table function to observe data points from the graph of the function for different values of x.

  • Image

    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.

  • Image

    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.