Calculate exponential growth when rate r is changing

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SUMMARY

The discussion focuses on calculating exponential growth when the growth rate r is not constant but varies over time. The formula f(t) = I(1 + r(t))^t is established for cases where r(t) changes, particularly when r(t) increases linearly. The relationship between this formula and the function x^x is highlighted, indicating that both exhibit similar growth properties under certain conditions.

PREREQUISITES
  • Understanding of exponential growth formulas
  • Familiarity with variable functions in mathematics
  • Knowledge of linear, geometric, and logarithmic growth patterns
  • Basic calculus concepts related to growth rates
NEXT STEPS
  • Explore the implications of variable growth rates in real-world scenarios
  • Study the mathematical properties of the function x^x
  • Investigate the effects of different types of growth functions on long-term projections
  • Learn about differential equations related to changing growth rates
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Mathematicians, economists, data analysts, and anyone interested in modeling growth processes with variable rates.

Vodkacannon
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The formula f(t) = I(1 + r)t gives the value of something after it has grown for t years, at rate r, with an initial value I.

What if the growth rate r is continuously increasing?
What is the formula now?
Does it relate somehow to xx?
 
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It depends on how it increases with t. Is it linear with t? Geometric? Logarithmic? ...
 
It is, of course, f(t)= I(1+ r(t))^t. And, yes, that has similar properties to x^x, especially if r(t) is linear.
 

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