# Continuously compounding

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Which amounts represents the end value of investing $80,000 for 3 years at a continuously compounded rate of 12%?

I am not sure how to calculate a problem which has continuous compounding - I know you have to use the e function, but I do not understand or know how.. Can I just substitute the value of e into the forumla?

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##### Solution Summary

The expert examines continuously compounding values of investing.

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With continuous compounding the formula is

Future value = ...

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