Does the following example represent an exponential function?
You invest $100 at a 5% simple interest rate.
1 answer
No, this example does not represent an exponential function. The formula for simple interest is I = PRT, where I is the interest earned, P is the principal amount invested, R is the interest rate, and T is the time the money is invested for. In this case, the interest earned would be $100 * 0.05 * T, where T is the time the money is invested for. Since there is a linear relationship between the interest earned and the time invested, this example does not represent an exponential function.