<PRE><B>Question 1125093</B>
the growth rate is exponential, therefore f = p * (1 + r) ^ n applies.


p is the present value = 8
f is the future value = 12.1446.
n is equal to 4 days.
you want to solve for r.


f = p * (1 + r) ^ n becomes 12.1446 = 8 * (1 + r) ^ 4


divide both sides of the formula by 8 to get 12.1446 / 8 = (1 + r) ^ 4


take the fourth root of both sides of the equation to get (12.1446 / 8) ^ (1/4) = 1 + r


subtract 1 from both sides of the equation to get (12.1446 / 8) ^ (1/4) = 1 = r


solve for r to get r = .110000839


1 + r is the 1 day exponential growth factor = 1.110000839.


the 4 day exponential growth factor is 1.110000839 ^ 4 = 1.518075.


the 6 day exponential growth factor is 1.110000839 ^ 6 = 1.870423035.


to find the growth factor, you assume the present value is 1.


for example:


1 * (1 + .110000839) ^ 4 = 1.518075.


the growth factor is then applied to the real present value.


in this case, the real present value was 8.


8 * (1 + .110000839) ^ 4 = 8 * 1.518075 = 12.1446.








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