The future worth of a present value is modeled using the following function: $F ( n ) = P ( 1 + i ) ^ { n }$ where $\begin{array} { l }
F = \text { future worth } ( \$ ) \
P = \text { present value } ( \$ ) \
i = \text { interest rate (\%) } \
n = \text { length of investment (years) }
\end{array}$ Which type of mathematical model is used here to describe the gravitational force?
A) Linear model
B) Nonlinear model
C) Exponential model
D) Trigonometric model

Question

The future worth of a present value is modeled using the following function: $F ( n ) = P ( 1 + i ) ^ { n }$ where $\begin{array} { l } 
F = \text { future worth } ( \$ ) \
P = \text { present value } ( \$ ) \
i = \text { interest rate (\%) } \
n = \text { length of investment (years) }
\end{array}$ Which type of mathematical model is used here to describe the gravitational force?
A) Linear model
B) Nonlinear model
C) Exponential model
D) Trigonometric model

Quizplus · Accepted Answer

The function $F(n) = P(1 + i)^n$ represents an exponential model because the future worth of the present value grows at a rate proportional to its current value, which is characteristic of exponential growth.

The Future Worth of a Present Value Is Modeled Using F(n)=P(1+i)nF ( n ) = P ( 1 + i ) ^ { n }F(n)=P(1+i)n

The Future Worth of a Present Value Is Modeled Using $F ( n ) = P ( 1 + i ) ^ { n }$