5-5

Mardi Gras Break Blog #2-
Chapter 5-Section 5

Chapter 5, section 5 includes three formulas you must know. They are listed below:

The first formula involves:
A(t) = A (1 + r)t
A- is the orignal amount
r- is the rate
t- is amount of time

The second formula involves:
A(t) =A bt/k
A- is the original amount
b- whether you half, triple, or quaterly
t- is the time
k-the time it takes to get to b
** used with doubling

The thrid formula involves:
P(t) = P er/t
** used with continuosly

EXAMPLE:
You must choose which formula you use when given a problem. Example:You invest 3,000 at 16% intrest compounded continuously. How much money will you have after 2 years?

Plug into your calculator P = 3000e^(.16)(2) = $7.351.02