Question

Given an exponential function for compounding interest, A(x) = P(1.04)x, what is the rate of change?

0.04%
1.04%
104%
4%

Answer 1

Rate of change is 1 minus what’s inside the parenthesis (this will give you decimal, so multiply by 100)

1.04-1=0.04

0.04 to percent -> 4%