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What is a real world example for the following exponential equation: y=200(1.02)^4?

User Grundyoso
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1 Answer

5 votes
The application of a certain capital (money) with compound interest.
For example:

M = C(1+i)^t

C = $ 200,00
i = 2% (0,02) per month
t = 4 months

___________________________

M = 200(1+0,02)^4

M = 200(1,02)^4

So we can say that by applying $ 200 in 4 months with an interest rate of 2% a month, we will collect that amount.
User Drquicksilver
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