Continuous Compounding Formula

Some banks compound interest continuously, or at every instant. They use a different formula to find out how much money is accumulated in an account, the continuous compounding formula.

A = Pe^rt

A is the final amount of money in the account after a certain amount of time and at a certain interest rate.

P is the principal amount.
e = Natural Base
r is the interest rate in decimal form.
t is the time the amount of time the money is kept in the account.