SOLUTION: For a fixed rate, a fixed principal amount, and a fixed compounding cycle, the return is an exponential function of time. Using the formula, , let r = 8%, P = 1, and n = 1 and giv

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Question 77544: For a fixed rate, a fixed principal amount, and a fixed compounding cycle, the return is an exponential function of time. Using the formula, , let r = 8%, P = 1, and n = 1 and give the coordinates (t,A) for the points where t = 0, 1, 2, 3, 4. Round your answer to the hundredth's place.

a) Show coordinates in this space.


b) Show graph here.

Answer by stanbon(75887)   (Show Source): You can put this solution on YOUR website!
For a fixed rate, a fixed principal amount, and a fixed compounding cycle, the return is an exponential function of time. Using the formula, , let r = 8%, P = 1, and n = 1 and give the coordinates (t,A) for the points where t = 0, 1, 2, 3, 4. Round your answer to the hundredth's place.
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Amt = P=(1+r/n)^(nt)
A = 1(1+0.08/1)^(1*t)
A = (1.08)^t

a) Show coordinates in this space.
If t=0, A= 1
If t=1, A=1.08
If t=2, A=1.08^2
If t=3, A= 1.08^3
If t=4, A= 1.08^4
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b) Show graph here.

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cheers,
Stan H.

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