Question

The amount of money in a bank account is given by the functiony = 200(1 + 0.05)^t, where y is in dollars and t is measured in months since the account was opened.What is the percent rate of growth of the bank account?Enter your answer in the box.

Answer 1

.Explanation

The question wants us to get the growth rate of the sum invested

To do this,

We have to use the general equation

`\begin{gathered} y=P(1+(r)/(100))^t \\ \text{where P is the amount invested} \\ r=percent\text{ growth} \\ t=n\\u\text{mber of years} \end{gathered}`

The given equation is

`y=200(1+0.05)^t`

To get the percentage growth rate, we will have to compare with the general formula

We will find out that

`\begin{gathered} (r)/(100)=0.05 \\ \\ r=100*0.05 \\ \\ r=5\text{ \%} \end{gathered}`