  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 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.  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`. 