Question

In order for an investment, which is increasing in value exponentially, to increase by a factor of 5 in 20 years, about what percent does it need to grow each year?

Answer 1

The investment that increase by a factor of 5 in 20 years, has a growth of 8.38% per year.

What is an exponential function?

An exponential function is in the form:

y = abˣ

Where y,x are variables, a is the initial value of y and b is the multiplication factor.

Given that an investment increasing in value exponentially, to increase by a factor of 5 in 20 years. Hence:

Factor per year = $5 ^\frac{`1}{20}=1.0838$

Growth per year = 1.0838 - 1 = 0.0838 = 8.38%

The investment that increase by a factor of 5 in 20 years, has a growth of 8.38% per year.

Find out more on exponential function at: brainly.com/question/12940982