ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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y=6(0.14)x
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y=6(1+14)x
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y=6(1.14)x
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y=6(0.86)x
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Detailed explanation-1: -A function which models exponential growth or decay can be written in either the form P(t) = P0bt or P(t) = P0ekt. In either form, P0 represents the initial amount. The form P(t) = P0ekt is sometimes called the continuous exponential model. The constant k is called the continuous growth (or decay) rate.
Detailed explanation-2: -Definition: Exponential Growth Model P(t)=P0(1+r)t. P0 is the initial population. r is the relative growth rate. t is the time unit.
Detailed explanation-3: -If a function is growing or shrinking exponentially, it can be modeled using a differential equation. The equation itself is dy/dx=ky, which leads to the solution of y=ce^(kx). In the differential equation model, k is a constant that determines if the function is growing or shrinking.
Detailed explanation-4: -The f(x) term represents the function. The a variable stands for the beginning value of your data. The r variable represents the growth rate. The x variable is the time interval. 03-Jan-2022