Hello. I understand how you get e with interest. Like (1 + 1/n)^n, where n becomes larger you get closer to e. P = C e^rt
P = future value
C = initial deposit
r = interest rate (expressed as a fraction: eg. 0.06)
n = # of times per year interest is compounded
t = number of years invested
But just because you get e from (1 + 1/n)^n, where n is a large number, why do banks an equation (P = C e^rt ) with e to calculate interest?
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The constant of e watch
- Thread Starter
- 21-02-2018 09:54
- Official Rep
- 23-02-2018 11:16
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