Answer:
The percentage change each year is 2%
Step-by-step explanation:
Generally, we can have an exponential equation written as;
f(t) = I( 1 + r)^t
where f(t) is the value at a certain time
I is the initial value at t = 0
r is the growth rate
t is the time we are looking at
Thus, we have it that;
1.02 = 1 + r
r = 1.02 -1
r = 0.02
So, let us write 0.02 as a percentage
We have this as 2/100 which is the same as 2%
The percentage change each year is 2%
