Question

The equation describes the value of an investment after years. For the investment, give the initial value, the continuous growth rate, the annual growth factor, and the annual growth rate. Round your answer for the annual growth factor to four decimal places, and your answer for the annual growth rate to two decimal places. The initial value is 1100 . The continuous growth rate is . The annual growth factor is . The annual growth rate is .

Answer 1

The continuous growth rate is 4.2%.

The annual growth factor is 0.04289.

The annual growth rate is given as 4.23%.

Step-by-step explanation:

As the complete question is not given, the complete question is found online and the solution is then implemented. The complete question is attached.

The equation is given as

`V=1100e^(0.042t)`

The continuous growth rate is given as by comparing it with the value of
`V=V_oe^(kt)`

Here K is the continuous growth rate thus K is 0.042. or 4.2%.

The continuous growth rate is 4.2%.

The annual growth factor is given as

`V_o(1+r)^t=V_oe^(0.042t)\\(1+r)^t=(e^(0.042))^t\\1+r=e^(0.042)\\1+r=1.04289\\r=1.04289-1\\r=0.04289`

The annual growth factor is 0.04289.

The annual growth rate is given as 4.23%.