Question

Mr.Underwood uses the function f(x)=12000(1.065)^x to calculate the growth of his savings account. Which of the following is Mr.Underwoods interest rate

Answer 1

The formula to find the amount is

`A = P ( 1+(r)/(100))^(n)`

The given function is

`f(x) = 12000(1.065)^(x)`

Comparing them we get

`1 +(r)/(100)=1.065`

Subtracting 1 from both sides

`(r)/(100)=0.065`

Multiplying by 100 on both sides

`r=0.065(100) = 6.5`

Mr.Underwoods interest rate is 6.5%

Answer 2

Mr UNderwoods interest rate is:
r=1.065-1
r=0.065
r=0.065*100%
r=6.5%

Answer: Mr. Underwoods interest rate is 6.5%