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4kNest t1_it3b6dj wrote

Why is it exponential?

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Infidian t1_it3oynb wrote

A 1% gain on 100 is 1. A 1% gain on 1000 is 10. The magnitude of the gain increases. The farther you go the better the gain

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4kNest t1_it3r3ip wrote

I’m in Calc 1 and I couldn’t figure that out smh.. maybe I should review the basics.

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skeith2011 t1_it4bo6u wrote

Let t0 = a

Then

> t1 = t0 + 0.01*t0 = 1.01*t0

And

> t2 = 1.01*t1 = 1.01*1.01*t0

> t3 = 1.01*t2 = 1.01*1.01*1.01*t0

> …

> tn = (1.01)^n * t0

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4kNest t1_it4fnlk wrote

This makes perfect sense, thank you :)

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