# An investment of \$200 increases at a rate of 9.5% per year. What is the growth factor, b? I think it's 1.095 due to the keyword "increases" but I just want to make sure.

Answer: The future worth (F) of the current investment (P) given the interest (i) is calculated through the equation,
F = P x (1 + i)^n
where n is the number of years or compounding period. The growth factor in the equation is, 1 + i which is equal to 1 + 0.095 or 1.095.

The growth factor is 1.095.

Step-by-step explanation:

We are given that,

Initial investment = \$200

Increase rate = 9.5%

Now, the growth function is given by , where P= initial investment, r= increase rate and n= number of years.

So, we get,

The growth factor is

i.e. Growth factor is

i.e. Growth factor is b= 1.095

Hence, the growth factor is 1.095.

## Related Questions

The numbers 1 through 50 are written with red marker on slips of paper while the numbers 51 through 100 are written with blue marker on slips of paper. All the papers are put into a bag and shuffled. One card is randomly selected. a. Find the probability of selecting a number less than 81 or a number written in red.

Less than 81 is from 80 to 1
that is 80 numbers
80/100=8/10=80%
80%
or a number writtten in red
50/100 are red
50% are red
it says or so it cannot be both
80%-50%=30%

What's 666 -66+777+90- 789

678

Step-by-step explanation:

First you have to do 666-66 which is 600. Then you add 777 which is 1377. Then you add 90 which is 1467. Last you subtract 789.

A standard deck of cards contains 52 cards. of these cards there are 13 of each type of suit (hearts, spades, clubs, diamonds) and 4 of each type of rank (a – k). what are the odds of drawing a heart from the deck of cards?

13/52 is the ratio of hearts to all cards
That reduces to a 1/4 ratio
or a 25% chance of drawing a heart