Friday, September 17, 2010

Growth Equation

Exponential growth equation

A ) y = C(1 - r)t
B ) y = C(1 + r)t
C ) Both
D ) Cannot be determined

Steps to derive

1 y = C(1 - r)t is a model for exponential decay and y = C(1 + r)t is a model for exponential growth.

2 So, the equation y = C(1 - r)t is not an exponential growth model

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