The investment that increase by a factor of 5 in 20 years, has a growth of 8.38% per year.
What is an exponential function?
An exponential function is in the form:
y = abĖ£
Where y,x are variables, a is the initial value of y and b is the multiplication factor.
Given that an investment increasing in value exponentially, to increase by a factor of 5 in 20 years. Hence:
Factor per year = [tex]5 ^\frac{`1}{20}=1.0838[/tex]
Growth per year = 1.0838 - 1 = 0.0838 = 8.38%
The investment that increase by a factor of 5 in 20 years, has a growth of 8.38% per year.
Find out more on exponential function at: https://brainly.com/question/12940982
