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22 January, 09:37

Given an exponential function for compounding interest, A (x) = P (1.02) x, what is the rate of change?

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  1. 22 January, 09:53
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    A (x) = P (1.02) ^x

    A (x) = P (1 + 0.02) ^x

    A (x) = P (1 + r) ^x

    Therefore rate of change = 0.02 = 2%
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