Problem 719

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?




after t years investment is initial investment

2600 = 2600e (0.08*t)

from the equation

\frac{r}{100} = 0.08

r = 8

So account is increasing each year by 8%


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