. . . .
Two young mathematicians think about the plots of functions.
- Devyn
- Riley, remember when I asked you about compound interest?
- Riley
- Yes I do! You were dealing with a formula like
- Devyn
- I was. With monthly compoundings and 3% interest with a principal of $1, it became just
- Riley
- I remember that. What about it?
- Devyn
- As time passes, the account is worth more and more.
- Riley
- Makes sense. You are gaining interest each month.
- Devyn
- But by how much? How fast is it growing?
- Riley
- You are thinking about rates of change!
- Devyn
- Right! How do we find the derivative ?
- Riley
- It isn’t a polynomial, so we can’t use Power Rule. What can we do?
What is the AVERAGE rate of change of over the first 2 years (so from to )?
(ROUND TO 2 DECIMAL PLACES)