Model Exponential Growth and Decay
Solve.
-The value of a particular investment follows a pattern of exponential growth. In the year 2000, you invested money in a money market account. The value of your investment t years after 2000 is given by
The exponential growth model A = 9400e0.061t. By what percentage is the account increasing each year?
A)6.1%
B)6.5%
C)6.7%
D)6.8%

Question

Quizplus · Accepted Answer

The percentage increase per year is given by the exponent in the exponential growth model. In this case, the exponent is 0.061, which represents a 6.1% increase per year. Therefore, the answer is A) 6.1%.