Question

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 = 1900e^(0.058t). By what percentage is the account increasing each year?

Answer 1

Your growth factor will be `g=e^0.058=1.0597...`

Explanation:

And you can rewrite as `A=1900(e^0.058)^t=A*1.0597^t`

A growth factor can be converted to a percentege growth by realizing that `0.0597` gain is equivalent to `0.0597xx100%=5.97%`