NEEED HELPPPP
Given an exponential function for compounding interest, A(x) = P(.82)x, what is the rate of change?

Question

NEEED HELPPPP
Given an exponential function for compounding interest, A(x) = P(.82)x, what is the rate of change?

anonymous · Answer

−18%

 −8%

 0.82%

 82%

anonymous · Answer

Answer is -18%

If you need an explanation let me know.

anonymous · Answer

yes please

anonymous · Answer

The equation for compound interest is A=P(1+(r/n))^(nt)

r  = annual rate of interest (in decimal)
t  = number of years
n  =  number of times the interest is compounded

We're going to assume the x in your equation is a combination of all the variables that are missing, so we just focus on the r, or the rate we're trying to solve for.

Since it 1 + r, for it to be 0.82 the r would have to be -.18 which would be -18%