Question

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

Answer 1

Answer: 23%

Step-by-step explanation:

The exponential decay function is given by :-

$f(x)=b(1-r)^x$, where b is the initial amount , r is the rate of change in x years.

For the given exponential function for compounding interest,

$A(x)=P(.77)^x$

It can be written as :-

$A(x)=P(1-0.23)^x$

When we compare this equation with the standard equation of exponential decay function we get,

r = 0.23

In percent, the rate of change=$0.23\times100=23\%$

Answer 2

Answer:

-23%

Step-by-step explanation:

-0.23, or decay of 23%