Do you need this or any other assignment done for you from scratch?
We have qualified writers to help you.
We assure you a quality paper that is 100% free from plagiarism and AI.
You can choose either format of your choice ( Apa, Mla, Havard, Chicago, or any other)
NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.
NB: All your data is kept safe from the public.
Functional mathematics allows you to trace the relationship between variables and predicts the value of a dependent variable from some independent factor through function analysis. The relationship between them can be anything: linear, exponential, polynomial, and other kinds of relationship, depending on the equation constructed. Some equation is always precisely defined for functions, which allows using any reasonable values of X to determine their influence on the parameter Y. The converse is true since any equation can be transformed to find X when Y is known. In this example, I have chosen to focus on the mathematical function of compound interest, allowing for profitable increases in capitalization through compounding. The basic compound interest equation is defined as follows:
As you can see, there are five variables in the function. A is a dependent factor that determines the future value of the money initially invested, P, at an annual interest rate r, accruing at some period n, over time t (Fernando, 2022). In fact, the function A(P,r,n,t) depends on four variables at once, which complicates the analysis task. Therefore, I decided to make three of them constants in order to study the function in a more meaningful way:
In this unique function, $1000 was invested at some interest rate r, according to the compound interest formula, every two months for a year (six times in all) for ten years. The $1000 is expected to turn into a more significant amount after that time, but now it can be seen that the particular value of A will only be determined through the interest rate r according to some polynomial relationship. If I enter a value of 0.05 as r, then in ten years, the amount will turn into $1645, as shown in the equation below. In fact, the applied meaning of such an analysis might be to choose the best interest rate that will save money faster. For example, at a rate of 0.09 after ten years, the value of money would be $2443, while at a rate of 1%, it would be only $1105. Thus, it is possible to measure the value of A based on the interest rate parameter.
Reference
Fernando, J. (2022). Compound interest. Investopedia. Web.
Do you need this or any other assignment done for you from scratch?
We have qualified writers to help you.
We assure you a quality paper that is 100% free from plagiarism and AI.
You can choose either format of your choice ( Apa, Mla, Havard, Chicago, or any other)
NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.
NB: All your data is kept safe from the public.