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5.2 Mathematical Models in Banking

EQ: What does it mean to compound continuously?

Notes: Continuous Compound Interest formula:  A = P e^(r * t)
A = Maturity (total amount P + I)   P = Principal    r = rate in decimal form
e = Euler’s number (2.718281828…)   t = time (years)

Prep work: Textbook: p225(27-30)  p216(9-10, 19-22)  p267(4-7, 9-13)

Retake Assignment (complete retest by 10/18):
p23(3-8, 17-27) p25(13-15) p47(1-7, 11-16, 21, 22) p49(8-12)
You also must complete at least 50% of the problems from all missing assignments.

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