Neeed given an exponential function for compounding interest, a(x) = p(.82)x, what is the rate of change?
I hope my answer helped you.
The rate of interest is 18%.
The exponential function for the compound interest is
As we know,
The compound interest is given by , 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%.
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