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kipiarov [429]
3 years ago
5

The value of savings account can be modeled by the function S(x) = 5, 000 * (1.025) ^ (0.7x) x is the number of years 1980. What

is the approximate growth rate of the savings account?
Mathematics
1 answer:
garik1379 [7]3 years ago
8 0

Answer:

The approximate growth rate of the savings account is 2.5%

Step-by-step explanation:

Given the the function S(x) = 5, 000 * (1.025) ^ (0.7x)

From the function, we can see that part:  (1.025). It presents for the growth factor or rate with the formula as:

(1 + r)  where r is rate

So we have:

(1 + r) = 1.025

<=> r = 1.025  -1

<=> r = 0.025

In pecentage, we have the rare: 0.025 *100% = 2.5%

So the approximate growth rate of the savings account is 2.5%

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we know by definition that

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