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Show that the account grows at a rate proportional to a

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Reference no: EM131565377

Question: Solve the given problems.

A bank account that has continuous compounding at an annual interest rate r has a value A = A0ert, where A0 is the original amount invested, and t is the time in years. Show that the account grows at a rate proportional to A. (Continuous compounding means interest is being added continually, rather than after a specified length of time.)

Reference no: EM131565377

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