Question 67630: I cant figure this out. Please help.
4) 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.
A = P(1+r/n)^(nt) is the exponential formula for determining the value
of an investment (P) that is growing at a compounded rate.
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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(t)=1(1+0.08/1)^(1*t)= (1.08)^t
A(0)= =1
A(1) =1.08
A(2)= 1.08^2=1.17
A(3)=1.26
A(4)=1.36
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a) Show coordinates in this space.
(0,1), (1,1.08), (2,1.17), (3,1.26), (4,1.36)
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Cheers,
Stan H.
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