Course Content

# R Introduction: Part I

1. 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 take an example related to probability and combinatorics: to find out the number of possible outcomes when throwing three dice. In this case, we would calculate it as 6 (the number of outcomes for one die) raised to the power of 3.

# Task

Let’s say you invested $1000 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?