Question

In this function, if the value of r were to increase, would the value represented by P also increase or stay the same? Why? Explain your answer using terms such as "rate of growth and initial value in the context of the coin problem.The function is V(t) = P(1 + r)^t

Answer 1

given

V(t) = P (1 + r)^t

P represents the principal or the initial value

So, it will stay the same

The value that will be increase is V because it depends on r

So, as (r) the rate of growth increase the function V(t) will increase and the initial value P stay the same