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Fixed rate

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4) For a fixed rate, a fixed principal amount, and a fixed compounding cycle, the return is an exponential function of time. Using the formula, A = P(1 + R/N) rt, let r = 8%, p = 1, and n = 1

and give the coordinates (t,A) for the points where t = 0, 1, 2, 3, 4.

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Solution Summary

This provides an example of working with a financial equation.

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