Question

the projected value of an investment is modeled by the exponential function V(t)=25,000(1.115)^t,where V(t) is the total value after t years. what is the percent increase each year for investment?

Answer 1

In this case, we'll have to carry out several steps to find the solution.

Step 01:

Data

exponential function

V(t)=25,000(1.115)^t

V(t) = total value after t years

percent increase each year = ?

Step 02:

percent increase each year:

V(t)=25,000(1.115)^t

r = (1.115 - 1) = 0.115

% = 0.115 * 100% = 11.5%

The answer is:

11.5%