Continuously Compounded Interest

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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?

Warm-Up

30 minutes
Warm-Up Narrative.docx page 1

Investigation and New Learning

30 minutes

Sharing and Closing

10 minutes
Lesson Closing Narrative.docx page 1