# SOLUTION: What is the formula for finding interest using natural logs and e? What is the difference between compounding continuously and compounding anually?

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 Question 453285: What is the formula for finding interest using natural logs and e? What is the difference between compounding continuously and compounding anually?Answer by stanbon(57967)   (Show Source): You can put this solution on YOUR website!What is the formula for finding interest using natural logs and e? --- The formula for compounding continuously is A(t) = P*e^(rt) ----------------------------------------------------------------- What is the difference between compounding continuously and compounding anually? --- Annual compounding is A(t)=P(1+(r/n))^(nt) where n = 1 --- The Compounding continuously formula results from taking the limit of (1+(r/n)^(nt) as n approaces infinity. ======================================================= Cheers, Stan H. ==============