Question

Determine what type of model best fits the given situation: Principal P is invested at an annual interest of rate r, compounded k times a year for t years.A. exponentialB. none of theseC. quadraticD. linear

Answer 1

Remember that

The compound interest formula is equal to

$A=P(1+\frac{r}{n})^{nt}$

therefore

The answer is Exponential