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Is the compound interest of an amount as a function of time an examle of exponential growth?
LeandroOlanafb3031
Yes. Anything that multiplies repeatedly like that is exponential, also sometimes referred to as geometric.
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∙ 9y ago
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Why radioactivity is exponential?
The number of atoms that decay in a certain time is proportional to the amount of substance left. This naturally leads to the exponential function. The mathematical explanation - one that requires some basic calculus - is that the only function that is its own derivative (or proportional to its derivative) is the exponential function (or a slight variation of the exponential function).
Concering compound interest as the amount of principal increase the amount of interest paid decreases?
false
What interest is calculated on both the amount borrowed and any previous interest?
Compound interest, but only if the previous interest is accumulated.
What is the difference between simple interest and compound interest is one better than the other why or why not?
With compound interest, after the first period you interest is calculated, not only on the original amount but also on the amount of interest from earlier periods. As to "better" or not, the answer depends on whether you are earning it on savings or paying it on borrowing!
What is the value of compound interest?
Compound interest increases the amount earned by adding credited interest to the principal, and interest will then be earned on that money as well. The longer the principal and interest remain in the account, the greater the earnings they will accrue.
Is an exponential function is the inverse of a logarithmic function?
No, an function only contains a certain amount of vertices; leaving a logarithmic function to NOT be the inverse of an exponential function.
An exponential growth function describes an amount that decreases exponentially over time?
an exponential growth function describes an amount that increases exponentially over time.
Why radioactivity is exponential?
The number of atoms that decay in a certain time is proportional to the amount of substance left. This naturally leads to the exponential function. The mathematical explanation - one that requires some basic calculus - is that the only function that is its own derivative (or proportional to its derivative) is the exponential function (or a slight variation of the exponential function).
What is the effect of compound interest?
The effect of compound interest is that interest is earned on the accrued interest, as well as the principal amount.
Is simple or compound interest faster?
Calculation of simple interest is faster in comparison to compound interest. In the latter, interest is added up with the principal amount and interest is charged on that added amount in the next period calculation.
Concering compound interest as the amount of principal increase the amount of interest paid decreases?
false
Does an exponential growth function describe an amount that increases constantly over time?
Yes.
What exponential decay function describes an amount that decreases exponentially over time.?
True
Does an exponential growth function describes an amount that increases constantly over time?
Yes.
What is meant by the term compound interest?
Compound interest means that the amount of interest earned during a period increases the principal, which is then larger for the next interest period.
Does the amount of interest earned each year increase decrease or stay the same in a simple interest account What about in a compound interest account?
Simple interest: stays the same. Compound interest: increases.
Does the amount of interest earned each year increase decrease or stay the same in a simple interest account. What about in a compound interest account?
Simple interest: stays the same. Compound interest: increases.
