Question

Given an exponential function for compounding interest, A(x) = P(1.03)x, what is the rate of change?

Answer 1

Answer: 3%

Step-by-step explanation:

We know that the compound amount after x years will be given by the exponential function as:-

$A(x)=P(1+r)^x$, where r is the rate of interest in decimal.

The given exponential function for compounding interest is $A(x)=P(1.03)^x$ which can be written as

$A(x)=P(1+0.03)^x$

On comparing the equation to the standard form  , we get the rate of interest =0.03

In percent the rate of interest r =$0.03\times100=3\%$

Answer 2

0.03*100=3%
Hope it helps :-)