1.) you have a credit card with an initial balance of $3,168 and an interest rate of 12.75 % APR if you make no payments on the
2 answers:
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Given function :
We need to identify a " initial amount", b "growth factor", r " rate of growth".
We know, exponential growth formula
, where a is initial amount, b is growth factor. On comparing with given function let us find values of a and b.
⇔
.
We can see a= 1.05 and b = 1.46.
Now, b=1+r.
Therefore, 1+r =1.46.
Subtracting 1 from both sides, we get
1+r-1 =1.46-1
r = 0.46.
On converting 0.46 into percentage, we get
0.46 × 100 = 46.
Therefore, intial amount a = a= 1.05 , growth factor b = 1.46, and the rate of growth r= 46%.