Instructions: Interpret the function given in the context of the real-world situation described to answer the question.The projected value of an investment is modeled by the exponential function V(t)=25,000(1.115)t𝑉(𝑡)=25,000(1.115)𝑡, where V(t)𝑉(𝑡) is the total value after t𝑡 years. What is the percent increase each year for the investment?Answer 1 Question 14 %
Question
Instructions: Interpret the function given in the context of the real-world situation described to answer the question.The projected value of an investment is modeled by the exponential function V(t)=25,000(1.115)t𝑉(𝑡)=25,000(1.115)𝑡, where V(t)𝑉(𝑡) is the total value after t𝑡 years. What is the percent increase each year for the investment?Answer 1 Question 14 %
Solution
The percent increase each year for the investment is 11.5%. This is because in the exponential function given, 1.115 represents the growth factor per year. To convert this to a percentage, we subtract 1 from the growth factor and multiply by 100. So, (1.115 - 1) * 100 = 11.5%.
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