Solution:
The increasing function is given as:
[tex]y = a(1+r)^t[/tex]
Where,
y is future value
a is initial value
r is growth rate
t is number of years
From given,
a = 5000
y = 9500
t = 1997 to 2012 = 15 years
r = ?
Substituting the values we get,
[tex]9500 = 5000(1+r)^{15}\\\\(1+r)^{15} = 1.9\\\\Take\ \frac{1}{15}th\ power\ on\ both\ sides\\\\1+r = (1.9)^{\frac{1}{15}}\\\\1+r = 1.04367\\\\r = 1.04367 - 1\\\\r = 0.04367\\\\In\ percentage,\\\\r = 0.04367 \times 100 \%\\\\r = 4.367 \% \approx 4.37 \%[/tex]
Thus annual percent growth is 4.37 %
