Given an exponential function for compounding interest, A(x) = P(.82)x,

Julia White

Julia White

Answered question

2022-01-16

Given an exponential function for compounding interest, A(x)=P(.82)x, what is the rate of change?
a)18%
b)8%
c)0.82%
d)82%

Answer & Explanation

movingsupplyw1

movingsupplyw1

Beginner2022-01-17Added 30 answers

Step 1 
Given an exponential function for compounding interest, A(x)=P(.82)x, what is the rate of change? 
Step 2 
Defining compound interest is
A=P(1R100)n 
P principle 
R rate of interest 
Compare with given equation A(x)=P(.82)x 
R=0.18 
So rate of interest R=0.18

sirpsta3u

sirpsta3u

Beginner2022-01-18Added 42 answers

It is a. This is because to find rate we subtrat the rate in this case is .82 or 82%1 or 100% and that would give you the rate in this case its decreasing by an 18%
alenahelenash

alenahelenash

Expert2022-01-23Added 556 answers

Result: The rate of interest is 18%. Step-by-step explanation: The exponential function for the compound interest is A(x)=P(0.82)x That is, A(x)=P(10.18)x As we know, The compound interest is given by A=P(1+r)x, where r= rate of interest. Comparing reveals that, The interest rate is 0.18 percent, or 18%. As a result, the interest rate is 18%.

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