Question

An investment of $450 increases at a rate of 6.5% per year. What is the growth factor, b?

Answer 1

$\bf \qquad \textit{Amount for Exponential Growth} \\\\ A=P(1 + r)^t\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{initial amount}\to &450\\ r=rate\to 6.5\%\to \frac{6.5}{100}\to &0.065\\ t=\textit{elapsed time}\\ \end{cases} \\\\\\ A=450(1+0.065)^t\implies A=450(\stackrel{growth~factor}{1.065})^t$