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2 years ago

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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.

1 answer:

sweet-ann [11.9K]2 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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