An investment of $200 increases at a rate of 9.5% per year. What is the growth factor, b
1.095 I suspect although you do not say if this is compounded.
Choose the single logarithmic expression that is equivalent to the one shown.
log^10 60- log^10 10
The growth factor, b, can be calculated using the formula:
b = 1 + r
Where r is the rate of growth expressed as a decimal. In this case, the rate of growth is 9.5%, which can be written as 0.095.
b = 1 + 0.095
b = 1.095
Therefore, the growth factor, b, is 1.095.
To calculate the growth factor, we need to first understand what it means.
The growth factor is a multiplying factor that represents how much the investment increases or decreases each year. It is often expressed as a decimal or a percentage.
In this case, the investment is increasing by 9.5% per year. To calculate the growth factor, we can use the formula:
Growth Factor (b) = 1 + Growth Rate (r)
Where:
- Growth Factor (b) is what we are trying to find.
- Growth Rate (r) is the rate of increase or decrease as a decimal.
So, for this investment, the growth factor (b) can be calculated as follows:
b = 1 + 0.095 (since the growth rate is 9.5%, or 0.095 as a decimal)
Calculating the growth factor:
b = 1 + 0.095
b = 1.095
Therefore, the growth factor (b) for this investment is 1.095.