I have a sort of general question regarding the exponential function (ab^t). I understand what each variable stands for, but I don't understand why it works.
For example:
a) 100 + (100 (.10)) = 110
b) 110 + (110 (.10)) = 121
Using ab^t saves you the trouble of going through step a, above.
100 (1.10)^2 = 121
I like the fact that it works, but I don't understand why it works. Why does raising ab to the t power always work? I have the formula memorized, but I just can't see why it works. Is there a proof of this out there somewhere or can someone explain why it works?
Thanks,
Okubow

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