the value of a particular investment follows a pattern of exponential growth. In the year 2000,

Question

you invested money in a money market account. The value of your investment t years after
2000 is given by the exponential growth model A = 1600e^(0.052t). By what percentage is the account increasing each year?

Answer 1

By the "just look at it" theorem, I would say

5.2% as an instantaneous rate.

If you want the rate per annum, compounded annually .....

e^(.052(1)) = 1.0533775...

so appr 5.34%