If you invest x dollars at 4% interest compounded annually, then the amount A(x) = 1.04x. Find A o A, A o A o A, and A o A o A o A. What do these compositions represent? Find a formula for the composition of n copies of A.
f o g = f(g(x))
The Attempt at a Solution
Okay, well, I'm trying to work this out and I get really stuck.
If I do A(A(x)), that's A(A(x)) = 1.04(1.04x) correct? I'm not sure at all "what these compositions are supposed to represent. Please help!