MAT 1300 Lecture Notes - Lecture 4: Compound Interest, Savings Account

• School: University of Ottawa
• Department: Mathematics
• Course: MAT 1300
• Professor: Dongyang Kuang

Document Summary

The ordinary limit exists when the 2 one-sided limits exist and are equal. Basic rules: lim f(x)/g(x)= lim f(x)/ lim g(x) unless lim g(x)=0, then this rule doesn"t apply. If p is a polynomial then just plug the number into the equation. Exponential functions f(x)=ax where a" is a positive number a > 0 and a 1. I invest in a savings account at 100%. If i take the limit as a number of compoundings, *note: the more often i composite, the more money i make, the additional money i make gets smaller and smaller, the numbers in the right hand column approach a limit. This formula is used when you see the words compounded continuously in the question. P= initial deposit r= interest rate (expressed as a decimal) n= number of compoundings/ year t= number of years. Ex: suppose i invest at a rate of 5% for 20 years.