Question 24
Which of the following lambda functions is equal to equation \(A\) below? [3 marks]
\[
A =
P\Big(
1 + \frac{r}{100}
\Big)^n
\]
Options:
lambda P, r, n: P * 1 + (r / 100)**nlambda P, r, n: P * 1 + r / 100**nlambda P, r, n: P * (1 + r / 100)**nlambda P, r, n: P * ((1 + r) / 100)**nlambda P, r, n: P (1 + r / 100)**n
Solution
\(A\) equals the sum of 1 and \(\frac{r}{100}\) to the power of \(n\) (i.e., (1 + r / 100)**n), of which is multiplied by \(P\) (i.e., add P * in front).