BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Compound interest is an example of which function?

A	Linear Function
B	Quadratic Function
C	Exponential Function
D	I can’t function

Explanation:

Detailed explanation-1: -An application of exponential functions is compound interest. When money is invested in an account (or given out on loan), a certain amount is added to the balance. The money added to the balance is called interest.

Detailed explanation-2: -In finance, compound returns cause exponential growth. The power of compounding is one of the most powerful forces in finance. This concept allows investors to create large sums with little initial capital. Savings accounts that carry a compound interest rate are common examples of exponential growth.

Detailed explanation-3: -The equation for compound interest is

There is 1 question to complete.