A = P(1+i)^n
The Attempt at a Solution
Here is my attempted solution, can someone please verify if my method is correct!
Thanks in advance![/B]
Exponential growth is a type of growth in which the value of a quantity increases at an increasing rate over time. This means that the amount by which the quantity grows also increases over time.
In linear growth, the value of a quantity increases by a fixed amount over a certain period of time. In exponential growth, the value of a quantity increases by a fixed percentage over a certain period of time.
Compound interest is a type of interest calculation in which the interest earned is added to the principal amount, and then the interest is calculated again on the new total. This results in exponential growth of the initial investment.
Compound interest can significantly increase the value of savings and investments over time. The longer the time period and the higher the interest rate, the greater the impact of compound interest.
The rate of exponential growth and compound interest is affected by the initial amount invested, the interest rate, the compounding frequency, and the time period. Higher initial amounts, interest rates, and compounding frequencies will result in a faster rate of growth. A longer time period will also result in a higher total amount earned through compound interest.