Question

exponential models
guided practice
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a bank gives 6.5% interest per year. what is the growth factor ( b ) in this situation?
( b = )

Explanation:

Step1: Recall growth factor formula

For exponential growth, the growth factor \( b \) is given by \( b = 1 + r \), where \( r \) is the growth rate (in decimal).

Step2: Convert percentage to decimal

The interest rate is \( 6.5\% \), so \( r=\frac{6.5}{100}=0.065 \).

Step3: Calculate growth factor \( b \)

Using \( b = 1 + r \), substitute \( r = 0.065 \): \( b=1 + 0.065=1.065 \).

Answer:

1.065