Answer:
= A(t) = 120000(1.06)^t t = 1 year
We just add ^12 to equal 1/12 months.
Then use the notation below.
Step-by-step explanation:
We simply want to write an equivalent form of the same equation that will allow for the time period to be calculated in years.
For one year, t = 1, we want it to grow 6% = 1.06
Yearly Rate of Growth annual equation: = 7200
P(i) 7200/ 120000 x 100% = 6% per year growth rate
the yearly growth factor is 1 + appreciation rate = 1+i =1+0.06= 1.06
So time in years can be added to t
= A(t) = 120000(1.06)^t t = 1 year
The yearly growth factor = 1.06
To equate monthly we add the exponent t*12*1/12 before 120000(1.06)^t
then add 1/12 to replace ^t = monthly, or just keep the t= time
A(t) = 120000(1.06)^12t
