PRC-2 · Chapter 4 · Question 40 of 60
If interest is compounded 'continuously', which mathematical constant is utilized in the formula?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Euler's Number (e)
Explanation
For continuous compounding, the growth is modeled using the exponential function A = Pe^(rt), where 'e' is approximately 2.71828.
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