in the original example in section 1, $1,000 was invested at a 2% interest rate compounded n times per year. even when n increased to 365 so the interest was compounded every day, the maximum value in the account after 1 year was less than $1020.21. there is always a maximum amount of increase in an account from compound interest. that amount is referred to as the result of “continuous compounding.” when interest is compounded continuously, the formula is: p = p 0ert where the principal p 0, is invested in an account that pays an annual interest rate r (written as a decimal), compounded for t years. the number e is an irrational constant (like the number π). it is the base of the “natural logarithma. use the formula for continuous compounding with the original example: $1000 invested at 2% for 1 year. record the amount to 5 decimal places. use a calculator. b. compare it to the result using the original compound interest formula with n = 365 calculated to 5 decimal places. which has a larger value? explain.