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The equation V = 2500e^-0.0055t describes the value of an investment after t yea

ID: 2767874 • Letter: T

Question

The equation V = 2500e^-0.0055t describes the value of an investment after t years. For the investment, give the initial value, the continuous growth rate, the annual growth factor, and the annual growth rate Round your answer for the annual growth factor and annual growth rate to four decimal places The following functions describe the value of investment after t years V = 1800(1.0595)^t. For the investment, give the initial value, the continuous growth rate, the annual growth factor, and the annual growth rate Round your answer for the annual growth factor and annual growth rate to four decimal places

Explanation / Answer

6)

Initial investment = 2500

Cotinious growth rate = 0.55

Annual growth factor = 0.55 - 0.50

                                      = 0.05

Annual growth rate = 0.05 / 0.50 = 10%

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