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Alicia invested $35,000. Each year,6% of the current years account value isn’t earned in interest (Compound Interest).

What growth factor will be used to calculate the amount of interest each year?

Alicia invested 35000 Each year6 of the current years account value isnt earned in interest Compound Interest What growth factor will be used to calculate the a class=

Respuesta :

MathPhys

Answer:

1.06

Step-by-step explanation:

The equation for compounded interest is:

A = P (1 + r)^t

where A is the final amount,

P is the initial amount,

r is the annual interest rate as a decimal,

and t is the time in years.

The growth factor is 1 + r.  In this case, r = 0.06.  So the growth rate is 1.06.

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