Education Technology

Accelerated Returns

Updated on 02/06/2015

Activity Overview

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

Key Steps

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

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    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.

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    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.