Question 47674: 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. Round the A value to the tenth's place.
a) Show coordinates in this space.
Show work in this space.
b) Show graph here.
Answer by Nate(3500)   (Show Source):
You can put this solution on YOUR website! A = P(1 + r/n)^(tn)
A = (1 + 0.08)^(t)
A = (1.08)^t
You can show as: y = (1.08)^x
t = 0
y = (1.08)^x
y = (1.08)^0
y = 1
t = 1
y = (1.08)^x
y = (1.08)^1
y = 1.08
t = 2
y = (1.08)^x
y = (1.08)^2
y = 2.16
t = 3
y = (1.08)^x
y = (1.08)^3
y = 1.259712
t = 4
y = (1.08)^x
y = (1.08)^4
y = 1.36048896
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