Course Content
R Introduction: Part I
R Introduction: Part I
Exponentiation
Exponentiation is another fundamental mathematical operation, which is readily available in R's base functionality.
In the context of finance, this operation plays a critical role in the computation of compound interest, which is pivotal for understanding the growth of loans or investments over time.
To exponentiate a number a to the power of n in R, the syntax is a^n. Interestingly, if you're familiar with Python, you might recognize the ** operator, which can also be used in R (a**n).
Let's consider an example related to probability and combinatorics: finding the number of possible outcomes when throwing three dice:
In this case, we calculate it as 6 (the number of outcomes for one die) raised to the power of 3 (the number of dice). Here is the code for this example:
# Number of possible outcomes 6^3
As you can see, this results in 6^3, which equals 216 possible outcomes.
Swipe to show code editor
Let's say you invested $1,000 at an annual interest rate of 13%. To calculate the total amount of money you would accumulate over a period of 4 years with compound interest, you would perform the following calculation:
Compute the product of 1000 and 1.13 raised to the power of 4.
Switch to desktop for real-world practiceContinue from where you are using one of the options belowThanks for your feedback!
Exponentiation
Exponentiation is another fundamental mathematical operation, which is readily available in R's base functionality.
In the context of finance, this operation plays a critical role in the computation of compound interest, which is pivotal for understanding the growth of loans or investments over time.
To exponentiate a number a to the power of n in R, the syntax is a^n. Interestingly, if you're familiar with Python, you might recognize the ** operator, which can also be used in R (a**n).
Let's consider an example related to probability and combinatorics: finding the number of possible outcomes when throwing three dice:
In this case, we calculate it as 6 (the number of outcomes for one die) raised to the power of 3 (the number of dice). Here is the code for this example:
# Number of possible outcomes 6^3
As you can see, this results in 6^3, which equals 216 possible outcomes.
Swipe to show code editor
Let's say you invested $1,000 at an annual interest rate of 13%. To calculate the total amount of money you would accumulate over a period of 4 years with compound interest, you would perform the following calculation:
Compute the product of 1000 and 1.13 raised to the power of 4.
Switch to desktop for real-world practiceContinue from where you are using one of the options belowThanks for your feedback!
Switch to desktop for real-world practiceContinue from where you are using one of the options below