Continuous exponential functions

Asked Apr 08 '14 at 20:05

Active Apr 08 '14 at 20:38

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In my book, it makes it appear that any continuous exponential function, such as those regarding money, do not follow the traditional formula of $$\text{growth} = (1+\text{return})^x $$ Rather, it gives the function $$(1+\frac{\text{return}}{n})^n $$ for any continuous function. Can someone explain why this is, and does this only apply in the case of compounding money?

Thanks!

edited Apr 08 '14 at 20:38

ruler501

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asked Apr 08 '14 at 20:05

OpieDopee

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Are you sure it's not $\left(1+\frac{\text{return}}{n}\right)^n$? – ruler501 Apr 08 '14 at 20:28
Whoops, yeah, you're right. – OpieDopee Apr 08 '14 at 20:32

Continuous exponential functions

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