Question

the projected value of an investment is modeled by the exponential function V(t)=30,000(1.125)^t ,where V(t) is the total value after t amount of years.what is the percent increase each year for the investment?

Answer 1

We have the following:

`V(t)=30000\cdot(1.125)^t`

Now, to know the percentage we use the term that is elevated to time (t), that is,

`1.125`

If 1 represents 100% then the percentage that increases would be

`1.125-1=0.125`

Therefore, the percentage is 12.5%