Question

1. Sheba opened a retirement account with $36,500. Her account grew at a rate of 7% per year compounded annually. She made no deposits or withdrawals on the account. Which value represents the growth factor? (2 points) O a) 1.7 Ob).07 O c) 1.07 O d) 0.7

Answer 1

Initial amount = 36,500

Then growth factor is = 1 + 7%

. = 1 + 7/100

. = 1.07

Answer is OPTION C) 1.07