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Exponential growth occurs when the growth rate of the value of a mathematical function is proportional to the function's current value.
Exponential growth: the change that occurs when an original amount is increased by a consistent rate over a period of time
in your own words? so i understand
Basically, it is a growth that is NOT an arithmetic growth. (It is not (2, 4, 6, 8, 10, ...) It is a growth that increases in larger and larger differences from the previous value. (2, 4, 8, 16, 32, etc)
Exponential growth example - population, velocity of a falling object, etc.
then whats the relationship between compound interest and exponentl growth?
Compound interest is a good example of exponential growth
wolf's answer is totally correct you should try plotting a graph for f(x) = y f(x)=y^2 f(x)=y^3 f(x)=y^4 . . . and you will understand it better
what is compound interest? @wolf1728
Interest that is calculated on the principal plus the interest. Simple interest: $100 at 5.% per year For each yer the value is: 105 110 115 120 125 Compound interest: $100 at 5.% per year For each yer the value is: 105 110.25 115.76 121.55 127.63
it may also help to think of exponential growth or compound int as a geometric sequence where you are multiplying by a constant each time ... 3,9,27,81 in example above @wolf1728 multiplied by 1.05 (5% int) each time
I believe dumbcow is referring to my compound interest example of 105 110.25 115.76 121.55 127.63 as being a geometric progression