Over a certain time period the price of gold doubled every 4 years.What was the yearly growth factor for gold during this period? Round your answer to two decimal places.

Question

Over a certain time period the price of gold doubled every 4 years.What was the yearly growth factor for gold during this period? Round your answer to two decimal places. ​

Quizplus · Accepted Answer

The yearly growth factor can be found using the formula for compound interest: (final amount/initial amount)^(1/number of years). Since the price doubles every 4 years, the growth factor is 2^(1/4) ≈ 1.19.

Over a Certain Time Period the Price of Gold Doubled