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, A=P(1 +r/n)nt, let r=8%, P = 1, and n =

Algebra ->  Polynomials-and-rational-expressions -> 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, A=P(1 +r/n)nt, let r=8%, P = 1, and n =      Log On


   

Question 38490: FOr a fixed rate, a fixed principal amount, and a fixed compounding cycle, the return is an exponential function of time. Using the formula, A=P(1 +r/n)nt, let r=8%, P = 1, and n = 1 and give the coordinates (t,A) for the points where t = 0,1,2,3,4.
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
A+=+P%2A%281+%2B+r%2Fn%29%5E%28n%2At%29
r = 8%
P = 1
n = 1
find A in terms of t
A+=+1%2A%281+%2B+.08%2F1%29%5E%281%2At%29
A+=+%281+%2B+.08%29%5Et
A+=+1.08%5Et
t = 0, A = 1
t = 1, A = 1.08
t = 2, A = 1.17
t = 3, A = 1.26
t = 4, A = 1.36