Growth and Decay

Question

My homework question wants me to write a formula on and investment showing annual growth and continuous growth, annual decay and continuous decay. I cannot find a formula for this. Help?!

Answer 1

I suspect that what is wanted is this:

Continuous grow would be: A=A₀e^kt, where the k will be determined from the stated growth rate per time period.

For annual growth: A=A₀(1+i)ⁿ where n is the number pf years and i is the interest per year.

Decay will just be negative exponents, except the 1/(1+i) is often called v.