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For a fixed rate, a fixed principal, and a fixed compounding cycle, the return is an expontential function of time. Using the formula, A=P (1+r/n)^nt, let r = 10%, P=1, and n=1 and give the coordinates (t,A) for the points where t=0,1,2,3,4. Please show work so I can understand. Thanks

2006-12-03 13:46:57 · 1 answers · asked by steve 1 in Education & Reference Homework Help

1 answers

I'll do the first, so you understand.

You are given the formula: A = P(1+r/n)^nt, and you are given r, p, and n. Your formula, now looks like this:
A = 1(1+.1/1)^1t, or: A = (1.1)^t

Now, plug in each value of t to find A.
At t = 0, A = 1.1^0 = 1
At t = 10, A = 1.1^10 = 2.5937

2006-12-05 01:17:30 · answer #1 · answered by ³√carthagebrujah 6 · 0 0

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