Compound interest is an example of exponential growth. A=P(1+r/n)^nt

Question

A = the Response area

P = the Response area (the initial deposit)

r = the annual Response area rate (expressed as a Response area)

n = the number of Response area interest is compounded per year

t = the time in Response area

Answer 1

years

As time goes on, the interest earned on the initial deposit is added to the principal balance, resulting in a larger amount of interest earned in subsequent periods. This compounding effect leads to exponential growth in the total amount in the account.