Suppose an investment grows from 9,000 to 48,000 over 9 years.
Choose the annual growth factor.
Round answers to 2 decimal places.
A) 39,000
B) 5.33
C) 4,333.33
D) 1.20

Question

Quizplus · Accepted Answer

The annual growth factor can be calculated using the formula for compound interest: Final amount = Initial amount * (growth factor)^years. Solving for the growth factor: 48,000 = 9,000 * (growth factor)^9, which gives a growth factor of approximately 1.20 when rounded to two decimal places.

Suppose an Investment Grows from 9,000 to 48,000 Over 9