Question

If r is the annual interest rate of the bank account, then at the end of the year the balance in the account is multiplied by a growth factor of x = 1 + r.

Answer 1

Explanation:

Yes , that is correct. The growth factor for the balance in the account at the end of the year is calculated by adding 1 to the annual interest rate, which is expressed as a decimal, and multiplying the result by the balance. This gives the formula:

Ending balance = Beginning balance * (1 + r)

where r is the annual interest rate as a decimal.