Chapter 8.7, Problem 88E

To determine

To Calculate: The formula for the amount, a savings account compounded n times per year for t years at an interest rate r and an initial deposit of P s given by $A=P{\left(1+\frac{r}{n}\right)}^{nt}$. Use L‘HospitaL’s rule to show that the liming formula as the number of compounding per year approaches infinity s given by $A=P{e}^{rt}$.