alicia invested $50,000. each year, 8% of the current years account value is earned in interest (compound…

alicia invested $50,000. each year, 8% of the current years account value is earned in interest (compound interest). part: 0 / 2 part 1 of 2 (a) what growth factor will be used to calculate the amount of interest each year? the growth factor is

alicia invested $50,000. each year, 8% of the current years account value is earned in interest (compound interest). part: 0 / 2 part 1 of 2 (a) what growth factor will be used to calculate the amount of interest each year? the growth factor is

Answer

Explanation:

Step1: Recall growth - factor formula

The growth factor for a percentage increase is calculated as (1 + r), where (r) is the rate of increase as a decimal.

Step2: Convert percentage to decimal

The interest rate (r = 8%=\frac{8}{100}=0.08).

Step3: Calculate growth factor

The growth factor (=1 + 0.08=1.08).

Answer:

(1.08)