- Karena_ 2 months
A is the current value of the investment after t years,

P is the initial amount invested or principal, r is the interest rate,

n is the number of compounding periods per year.

$3,000 is invested in two accounts, Account I which pays 5% interest compounded quarterly, and Account II which pays 5% interest compounded yearly. Using the above function to model these two investments, which function has a greater percentage rate of change?

An investment that is paid compound interest can be modelled by the function A(t)=P⋅(1+rn)^n t

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