Question

The balance of an account after t years can be found using the expression 4,500(1.75)^t where the initial balance was $4,500. By what percent does the account increase annually?

Answer 1

The Amount after t years is given by

`A(t)=4500(1.75)^t`

The Percentage annual increase is

`\begin{gathered} (A(1)-A(0))/(A(0))*100\% \\ \Rightarrow(4500(1.75)-4500)/(4500)*100\% \\ \Rightarrow0.75*100\%=75\% \end{gathered}`

Hence, the account increase 75% annually