Amount of Money at Continuously
Compounded Interest

Here is the formula for the amount of an investment
with continuously compounded interest:

A = P·er·t

( A is the final amount, t is the number of years,
  P is the amount originally invested,
  r is the annual interest rate written as a decimal )


Enter the numbers for your problem below and press "Calculate"

· e·

A =




Example: Suppose I invest $5,000 at 6% annual interest compounded continuously for 11 years.

This is how you would put the values into the formula to work it out with a calculator:

5000·e(.06)·(11)

If you enter the above numbers correctly on a calculator, you should get an answer for A of $9,673.96

Try entering those numbers in the appropriate spaces in the box above, press the "Calculate" button, and see if you get the correct answer. You can use this calculator to practice problems and make sure you are evaluating them correctly on your calculator.
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Created on ... Nov 18, 2009

Last updated on ... Nov 18, 2009