The value of a particular investment follows a pattern of exponential growth. You invested money in a money market account. The value of your investment t years after your initial investment is given by the exponential growth model A = 2600 e 0.08t . By what percentage is the account increasing each year?
Solution:-
after t years investment is initial investment
2600 = 2600e (0.08*t)
from the equation
= 0.08
r = 8
So account is increasing each year by 8%