MAT1033 Study Guide - Quiz Guide: Compound Interest, Interest
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Provide a generalization to each of the key terms listed in this section. Daily in a leap y ear n = 1 being invested at an annual interest rate, which is basically labeled by r, while continuously compounded, which is basically labeled by e, which is all labeled by the following formula: Continuously compounding: re = (cid:16)1 + r n(cid:17)n. Solve one of the two equations for either of the two variables in terms of the other variable. Substitute the solved expression into the other equation and solve for the rst variable. Substitute the rst solved variable into either expression and solve for the second vari- able. Multiply all of the terms of either one or both of the equations by the chosen constants from obtain either of the coe cients for either x or y. Add both equations to eliminate one of the two variables. Based on the solved variable, solve for the resulting equation.
