Question

NEEED HELPPPP

Given an exponential function for compounding interest, A(x) = P(.82)x, what is the rate of change?

Answer 1

The rate of interest is 18%.

Explanation:

The exponential function for the compound interest is
`A(x)=P(0.82)^x`

That is,
`A(x)=P(1-0.18)^x`

As we know,

The compound interest is given by
`A=P(1+r)^x`, where r = rate of interest.

On comparing, we get that,

The rate of interest is 0.18 i.e. 18%.

Hence, the rate of interest is 18%.

Answer 2

For the answer to the question above, it is -18% because to find rate we subtract 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%
I hope my answer helped you.