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den301095 [7]
3 years ago
12

A=130(1.05)^x by what percent does the balence increase each year?

Mathematics
1 answer:
frosja888 [35]3 years ago
6 0

Answer:

5%

Step-by-step explanation:

The question showing a growing function that commonly used in compound interest calculation. The formula for compound interest is:

A = P (1 +r) ^ t

A= amount of the balance after a period of t

P= principal, the initial money deposit

r= rate

t= time

The percent of balance increase should be represented by the rate(r). In this equation, the principal will be 130, (1+r) will be 1.05, and time will be x.

The value of rate (r) will be:

(1+r) = 1.05

r= 1.05-1= 0.05 = 5%

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