Graphing Compound Interest Using the Formula - A=P(1+r/n)^m
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I know that 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)^m, let r = 10%, P = 1, and n = 1 and give the coordinates (t, A) for the points where t = 0, 1, 2, 3, 4. Can you show me how you got the coordinates and how to graph it?
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This solution provides a detailed, step by step response and also contains an attached Excel document which shows the compound interest data graphed. The solution is well presented and easy to follow.
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Hello!
I assume here that when you wrote by '^m', you actually meant '^t'; otherwise this m makes no sense, as it is not defined anywhere else.
We know that P=1, n=1, and r=10%. In order to use the same units for everything, we ...
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