Question

The function f(x) = (1.008735)^12x models the monthly interest that a bank offers to Dan after x years. Dan converts the function to have x isolated in the exponent. What is the approximate rate of growth?

Answer 1

11%

12%

13%

14%

Answer 2

I think it's 11% because when I multiply 1.008735 to the 12th power, I get 1.11

Answer 3

Not sure if I'm right though.

Answer 4

exactly right
now get rid of the 1 before the decimal place, and that leaves \(.11\) or \(11\%\)

Answer 5

Got it, thanks :)