# Continuously Compounded Interest

Formula for Continuously Compounded Interest

To calculate continuously compounded interest use the formula below. In the formula, *A* represents the initial amount in the account

Continuously Compounded Interest is a great thing when you are earning it! Continuously compounded interest means that your principal is constantly earning interest and the interest keeps earning on the interest earned!

## Practice Problems

$$ A = Pe^{rt} \\ A = 2,000\cdot e^{.13 \cdot 20} \\ A = \boxed{ \$26,927.47} $$

Solution