Continuously Compounded Interest

Unit 8: Exponential Functions
Lesson 24 of 26

Objective: Students will be able to explain what happens to the value of a bank account as the number of times the interest is compounded annually approaches infinity. Students will be able to identify this limit using e.

Big Idea: We know that the more times you compound the interest in a year, the more money you will have in your account. Does it keep increasing forever? What happens if you compound infinitely many times?

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