Question

Given an exponential function for compounding interest, A(x) = P(.95)x, what is the rate of change?

−0.05%

−95%

−5%

95%

Answer 1

Because the part getting exponentiated is less than 1. The function will decrease as time passes. The rate of change is then 1-.95 or 5%

Answer 2

So your answer would be -5%

Answer 3

oh!. okay, that makes sense. thank you, again. (:

Answer 4

Yay! That was correct! Thanks!!