Exponentiation | Basic Syntax and Operations
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:

As you can see, this results in `6^3`, which equals `216` possible outcomes.

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`.

Everything was clear?

Section 1. Chapter 6

Course Content

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:

As you can see, this results in `6^3`, which equals `216` possible outcomes.

Compute the product of `1000` and `1.13` raised to the power of `4`.