Exponential Growth & Compound Interest
Date: 6/2/96 at 14:47:9 From: Anonymous Subject: Exponential Growth & Compound Interest (1) The cost of goods and services in an urban area increased 1.5% last month. If the rate continues, what will be the annual rate of increase? (2) Suppose a certain population increases by 30% every 10 years. By what percent does it increase each year?
Date: 6/2/96 at 16:39:41 From: Doctor Anthony Subject: Re: Exponential Growth & Compound Interest (1) A = P(1.015)^12 = 1.1956P This corresponds to 19.56% increase in 1 year. (2) A = P(1.30)^(0.1) = 1.0266P This corresponds to 2.66% increase in 1 year. -Doctor Anthony, The Math Forum Check out our web site! http://mathforum.org/dr.math/
Search the Dr. Math Library:
Ask Dr. MathTM
© 1994-2013 The Math Forum