Question

Find the missing information

Original value: 24,500
annual growth factor: 1.06
annual growth rate:
time frame: 5 years
new value:

Answer 1

might help to include what this pertains to

Answer 2

liberal arts

Answer 3

growth factor and growth rate are synonomous to me, so im not sure what the distinctions would be.

Answer 4

is the rate in terms of money by chance?

Answer 5

P(1+rate) where 1+rate is a factor

to im assuming the rate is just the .06 part; say 6% ?

Answer 6

I don't know I was absent for a week due to the flu and my teacher just gave me all this work and I don't no how to do it, I was hoping there would be a formula to this or something

Answer 7

you should have some material that you study from, a textbook or something?

Answer 8

im assuming here that factor and rate are related

Answer 9

no we don't have one we take notes in class but I wasn't there to take notes cuz I was sick

Answer 10

yes I think

Answer 11

since the factor is: 1.06

and the factor can be written as: (1+ rate)

would you agree that the rate is .06, or 6%?

Answer 12

i might if i new how u got that answer

Answer 13

... 1 + ? = 1.06

Answer 14

they give you the factor as 1.06 in the information already

Answer 15

o ok that makes since lol sorry

Answer 16

now the end solution depends on how we are determining the interest rate.

simple interest and compounded interest are 2 different beasts. and give 2 different answers.

Answer 17

ok im following you so which one do we use to find the new value

Answer 18

dunno, its not stated in the post that you presented us. That information is prolly either part of the material from which you are spose to be studying from, or you skipped over it while typing in the question

Answer 19

i typed the full question, but i have one side question to help me better understand this stuff, if the annual growth rate was 1% would that mean the annual growth factor is 1.01

Answer 20

that would seem a reasonable assumption to me :)

Answer 21

awesome

Answer 22

ok well you have been a lot of help thank you for your time

Answer 23

your welcome

if you dont know the kind of interest; you can present both forms and ask the teacher which one it was talking about,

Answer 24

simple interest is a simple formula: Prt

just multiply the starting value by the rate and the time given.

in your case: $*.06*5 = new value



compound interest can be tricker;\[P(1+\frac rn)^{nt}\]
r is the rate, n is the number of times a year the interests is adjusted, and t is the number of years

since your problem gives an annual rate, I would assume n=1 in this case.
\[P(1+.06)^5=new~value\]

Answer 25

good luck :)

Answer 26

ok thx again