Question

The value of a particular investment follows a pattern of exponential growth. In the year​ 2000, you invested money in a money market account. The value of your investment t years after 2000 is given by the exponential growth model A=2,100e^0.049t. By what percentage is the account increasing each​ year?

Answer 1

The account value is increasing by 4.9% each year, as indicated by the exponential growth model provided, where the growth rate of 0.049 is converted to a percentage by multiplying by 100.

Step-by-step explanation:

The question asks about the percentage increase per year for an investment account showing exponential growth. The equation representing the account's value is A=2,100e0.049t, where A is the amount of money at time t, and t is the years after the year 2000.

In the equation, the number 0.049 represents the growth rate in exponential form. To find the annual percentage increase, we convert this growth rate to a percentage form by multiplying it by 100. That gives us 0.049 × 100, which equals 4.9%. Therefore, the account is increasing by 4.9% each year.