Math Practice Topic: Continuous Compound Interest

Description: Calculate continuous compound interest given a balance, rate, and time.

Adaptive Learning Progression: Numbers get bigger.

Sample Levels (out of 3)

Answer the following questions involving continuously compounded interest. Input all answers to the nearest dollar. Use 2.7 as the value for e.

1.
Interest Rate: 8% per year
Starting Balance: $1000
Time Passed: 3 years
What is the new total balance?
How much interest has accrued if calculated as continuously compounded interest?

  Total balance:
  Interest:
2.
Interest Rate: 6% per year
Starting Balance: $1320
Time Passed: 13 years
What is the new total balance?
How much interest has accrued if calculated as continuously compounded interest?

  Total balance:
  Interest:
3.
Interest Rate: 5% per year
Starting Balance: $1450
Time Passed: 2 years
What is the new total balance?
How much interest has accrued if calculated as continuously compounded interest?

  Total balance:
  Interest:

Answer the following questions involving continuously compounded interest. Input all answers to the nearest dollar. Use 2.7 as the value for e.

1.
Interest Rate: 2% per year
Starting Balance: $3450
Time Passed: 168 months
What is the new total balance?
How much interest has accrued if calculated as continuously compounded interest?

  Total balance:
  Interest:
2.
Interest Rate: 4% per year
Starting Balance: $9910
Time Passed: 36 months
What is the new total balance?
How much interest has accrued if calculated as continuously compounded interest?

  Total balance:
  Interest:
3.
Interest Rate: 3% per year
Starting Balance: $2740
Time Passed: 120 months
What is the new total balance?
How much interest has accrued if calculated as continuously compounded interest?

  Total balance:
  Interest:

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