Question

the value of a particular investment follows a pattern of exponential growth. in the year 2000, you invested money in a money market account. the value of your investment t years after 2000 is given by the exponential growth model a=3500e0.067t. by what percentage is the account increasing each year?

Answer 1

Answer:

The account increases at the rate of 6.7% a year.

Step-by-step explanation:

An exponential growth model has the following format:

$A(t) = A(0)e^{rt}$

In which r is the decimal rate of growth of the model.

In this problem, we have that:

$A(t) = 3500e^{0.067t}$

0.067 = 6.7%

The account increases at the rate of 6.7% a year.