4 years ago

Given an exponential function for compounding interest, A(x) = P(1.02)x, what is the rate of change?

1 answer:

6 0

A(x) = P(1.02)^x
A(x) = P(1 + 0.02)^x
A(x) = P(1 + r)^x

Therefore rate of change = 0.02 = 2%

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