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anonymous

  • one year ago

Given an exponential function for compounding interest, A(x) = P(.77)x, what is the rate of change?

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  1. anonymous
    • one year ago
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    @paki

  2. paki
    • one year ago
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    To find rate we subtract the rate in this case is .77 or 77% - 1 or 100% and that would give you the rate in this case its decreasing by an 18%

  3. freckles
    • one year ago
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    I thought rate of change was derivative...

  4. anonymous
    • one year ago
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    I dont know:(

  5. freckles
    • one year ago
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    rate of change is derivative

  6. anonymous
    • one year ago
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    What did you get as an answer?

  7. freckles
    • one year ago
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    I think he thought you were looking for the interest rate

  8. freckles
    • one year ago
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    \[A=P(.77)^x \\ \frac{A}{P}=(.77)^x \] P is a constant take ln( ) of both sides

  9. freckles
    • one year ago
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    this will allow you to bring down that power of x

  10. freckles
    • one year ago
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    and then differentiate both sides

  11. anonymous
    • one year ago
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    ok:)

  12. anonymous
    • one year ago
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    I got 23% as an answer?!

  13. freckles
    • one year ago
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    wait? does that mean you aren't looking for rate of change and you are looking for interest rate?

  14. anonymous
    • one year ago
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    no! I think i am looking for rate of change. Why dont we just try out both?

  15. anonymous
    • one year ago
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    −0.13% −13% 0.23% −23% these are the answer choics

  16. freckles
    • one year ago
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    none of those are the rate of change so you must be looking for interest rate

  17. anonymous
    • one year ago
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    yes :)

  18. freckles
    • one year ago
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    @paki gave you the way to calculate the interest rate above just do 77%-100%

  19. anonymous
    • one year ago
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    -23?

  20. anonymous
    • one year ago
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    @paki

  21. freckles
    • one year ago
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    yes 77-100 is -23

  22. freckles
    • one year ago
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    so 77%-100% is -23%

  23. anonymous
    • one year ago
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    Thanks :)

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