RATE IN for EXPONENTIAL GROWTH of MONEY from CONTINUOUS COMPOUNDING

Описание: The RATE IN for exponential growth comes from interest. If there are no deposits, the change in account balance is modeled by the differential equation: dA/dt = RATE IN - RATE OUT. Here, A(t) is the account balance, and r is the continuously compounded interest rate. This short clip explains why continuous compounding naturally leads to exponential growth of money. This comes from a longer lecture on retirement account growth with withdrawals and shows how differential equations model savings, investments, and financial planning.

📖 Samuel Broverman, "Mathematics of Investment and Credit": https://amzn.to/4m2zfIt.

#ExponentialGrowth #ContinuousCompounding #DifferentialEquations #FinanceMath #RetirementPlanning #CompoundInterest #InvestingBasics #MathForFinance #InterestRate #FinancialEducation

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