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yulyashka [42]
3 years ago
12

f(t)=Q0(1+r)^t. Find the growth rate, r, to the nearest thousandth, given f(0.01)=1.06 and f(0.11)=1.09.

Mathematics
1 answer:
sweet-ann [11.9K]3 years ago
4 0
To find the ratio, you just need to divide the two function and solve it. The calculation would be:

<span>F(t)=Q0(1+r)^t

F(0.11)/F(0.01)  =  1.09/1.06
</span>Q0(1+r)^0.11 / Q0(1+r)^0.01 = 1.0291
(1+r)^(0.11-0.01) =  <span>1.0291</span>
(1+r)^0.10  = 1.0291
(1+r)^0.10*10  =  1.0283 ^10
(1+r  )= 1.3325
r  = 0.323
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